ICCN urges diplomatic action against global food security crisis

The International Chamber of Commerce Nigeria (ICCN) has called for urgent, decisive, diplomatic and practical action to avert a global food security crisis.

Chairman, ICC Nigeria, Babatunde Savage, made the call during the 23rd yearly general meeting of the chamber in Lagos.

He noted that the current Russia-Ukraine war could result in 47 million more people facing severe food shortages this year, coupled with the 276 million people believed to be at risk at the start of 2022.

According to him, shortages of fertilisers and self-defeating barriers to agricultural trade risk exacerbating food insecurity well into 2023.

The risks to peace and prosperity worldwide from these trends, he said, are immense and entirely foreseeable, but absolutely avoidable if the international community can take the necessary collective action.

According to him, there is an urgent need to support ongoing diplomacy to unblock exports of Ukrainian grain and vegetable oils as well as encouraging efforts to restart trade in Russian fertilisers.

Savage, who stressed that COVID-19 pandemic has no doubt wreaked havoc on the global economy, noted that the world has been experiencing the most difficult economic situation since World War-II.

He said: “We cannot quantify the human cost of the pandemic as it is inestimable. We encourage all countries to work together in the true spirit of cooperation, collaboration and coordination to protect the human race as well as abate the rampaging collateral economic damages being experienced. Looking at the existing condition of several businesses, many investors have halted further investments, while many more are contemplating divestment.

“Several employees have lost their jobs to the bargain. Arising from the foregoing, many nations experienced recession as almost 80 countries, including Nigeria approached the IMF for succour. As the pandemic was taking its toll on the global economy, Nigeria was not spared too

“The global economic outlook for 2021 has worsened moderately since mid-2021, offset by slightly more optimistic recovery. By contrast, 2021 forecasts have improved substantially for the Eurozone, Eastern Europe and Latin America.

MEANWHILE, the chief executive officer of Pan-African Payments and Settlement System (PAPSS), Mr. Mike Ogbalu III, has decried that intra-Africa trade is at 15-17per cent, which is by far the lowest intra-continental trade globally.

He identified high cost, high dependence on foreign exchange and inefficient payment systems as contributory factors to these poor statistics.

Ogbalu, who delivered the Post AGM talk o PAPSS, noted that Cross border transactions are very expensive, leading to an estimated loss of $5bn in payment charges annually

He said PAPSS provides a centralised payment and settlement, and supports safe and efficient flow of payments across the continent.

He said: “In 2017, $18.8 billion SWIFT commercial payments were made within Africa, and it is estimated to rise to $33 billion by 202.

“Most cross-border payment transactions originating from African banks are cleared outside the continent, with less than 20 per cent of the total payment.