AFEX, one of the leading Pan-African commodities players, has revealed more than 80 percent of Nigerian farmers still existed around and below the poverty line on the back of rising climate change effects on the continent among other factors.
The company revealed in a new report titled, “Rural poverty in Nigeria is more widespread in 2023 compared to baseline measurement in 2020”, that Climate change effects have become increasingly relevant in Africa, with farmers facing record impacts on their activities.
“Over 80 percent of Nigerian farmers still existed around and below the poverty line compared to 43 percent of Kenyan farmers existing around and below the poverty line.”
According to the report, “floods, increased droughts, and fewer rainfalls have threatened farmer productivity, resulting in food insecurity.”
Due to a combination of political, geographic, and social factors, Nigeria is recognised as highly vulnerable to the impacts of climate change. It ranked 160 out of 181 countries in the 2020 ND-GAIN Index, which summarizes a country’s vulnerability to climate change and other global challenges in combination with its readiness to improve resilience.
Mindful of the severe impact of climate change on Nigeria, such as desertification, flooding, erosion, drought, and national security risks arising from climate change-related challenges, President Bola Tinubu advocated increased financial and technical support for developing nations at the last Conference of Parties (COP28).
The “Rural poverty in Nigeria is more widespread in 2023 compared to baseline measurement in 2020” is the second impact report by AFEX covering its activities over the past five years.
According to the company, since the launch of operations in 2014, it has worked with over 500,000 farmers and executed over 1,000,000 MT in trades since inception.
“We have doubled down on driving impact through its work in Africa’s commodities markets, positively contributing to SDGs 1,2,5,8, 12, and 13. The company’s work in Climate Action, SDG 13, has also been captured.
“AFEX, which has operations across Nigeria and Kenya highlighted its efforts to secure livelihoods including providing farmers with certified seeds, quality fertilizer as well as extension and storage services through strategically distributed warehouses,” the company said.
Ayodeji Balogun, Group CEO of AFEX, said that the company’s impact goals are essential as it grows its business and expands, as it ensures that a commodities market that is as inclusive as it is efficient can be built.
“We look to create a positive difference in the places that we operate, empowering farming communities, fostering economic opportunity, and helping Africa sustainably provide for itself.”
According to the company, comprehensive efforts are required to create sustainable value in the commodities market particularly as challenges are being compounded by climate change effects.
Akinyinka Akintunde, President of AFEX Nigeria, also indicated that “This report marks a significant milestone for AFEX. It serves as a roadmap that guides us towards a more sustainable and responsible future building an efficient marketplace for commodities in Africa.
“We will continue to build a food system for the future and create shared prosperity, ensuring that no one is left behind in the journey to transform the agricultural ecosystem.”
