…Generally, Prices Rise By Over 120%
…Food Prices Rose Highest In North-Central, South-West
The National Bureau of Statistics (NBS) has revealed that the prices of staple foods such as beans, tomatoes, and yams have surged by an average of 120 per cent within twelve months from August 2023 to August 2024.
This surge, the NBS Selected Food Prices See report for August 2024 said, was highest in South-South, South East, and South West.
The items measured per kg/ltr selected in varieties include eggs; yam; garri (white/yellow); onion; beans; rice; catfish; tomatoes; plantain; vegetable oil; milk; frozen chicken; Irish potatoes; dried fish; Irish potatoes; maize; groundnut oil; wheat flour amongst others.
The average price of 1kg of brown beans for instance saw a significant price increase year-on-year by N121.92 per cent from N1,031.55 in August 2023 to N2,289.19 in August 2024.
There was also a notable increase in the price of bread (sliced) by 113.16 per cent on a year-on-year basis from N684.85 in August 2023 to N1,459.85 in August 2024.
The NBS said the average price of 1kg local rice sold loose went up by 148.41 per cent on a year-on-year basis from N737.11 in August 2023 to N1,831.05 in August 2024, with a month-on-month increase of 3.65 per cent.
Nigerians purchased, on average, 1kg of yam tuber at N1,661.80 in August 2024, an increase of 188.31 per cent from N576.39 in August 2023.
Analysis of the report by NewsNGR showed that the average price of purchasing 43 food items across the six geopolitical zones rose from N52,309.74 in August 2023 to N112,309.56 by August 2024.
According to the NBS August 2024 report, the price increase of 43 food items was highest in the South-South at N125,591.29 from the N59,136.31 recorded in August 2023, representing an increase of 112.38 per cent.
The item’s price rose in the South-East from N69,589.31 in August 2023 to N125,573.20 in August 2024.
In the South-West region, the items were sold for N121,805.69, a 131.70 per cent surge in 12 months from the N52,578.14 reported in August 2023.
The report said the purchasing power of the North-Central residents nosedived as costs rose by 167.47 per cent when the prices of the items were sold for N110,952.34 in August 2024 as against N41,481.48 in the preceding year.
It was no different in the North-East where prices rose to N97,044.23, a tightening 123.48 per cent surge for consumers compared to the N43,424.61 in the preceding twelve-month period of August 2023.
For the North-West zone, in August 2024, the price stood at N92,890.63 from the N47,648.57 in August 2023 purchasing power of residents. This shows a 99.80 per cent increase, NewsNGR reports.
The increasing cost of food commodities in Nigeria has become a serious cause for concern in recent years.
The situation worsened when President Bola Tinubu announced the end of fuel subsidy payments during his inauguration on May 29, 2023.
The ripple effects of this policy became more evident in the skyrocketing prices of goods and services as well a transportation costs across the country, with a devastating effect on food inflation.
Government Efforts
NewsNGR reports that the Federal Government in a bid to address the persistent increase in food inflation in July announced a 150-day duty-free import window for maize, cowpeas, wheat, and husked brown rice.
State governments are also doing their bits.
Governor Babajide Sanwo-Olu of Lagos State recently said his administration was striving to make Lagos a 21st-century economy with a major focus on agriculture, infrastructural development in public transportation, logistics and digital ecosystem.
To boost food security, the Niger State Government signed a Memorandum of Understanding (MoU) with the Lagos State government to facilitate constant supply of agricultural commodities for the end consumers in Lagos.
“Niger State is to produce agricultural commodities for Lagos State, and also process staple food items. Lagos State is to leverage the organised market and supply chain to meet consumers’ demands. This is the simple explanation of the Memorandum of Understanding, which is in tandem with Mr President’s food security agenda,” the MoU reads.
Recently, the Niger State Government through the Niger Foods Security System and Logistics Ltd. signed an MoU with the Niger State Agricultural and Mechanisation Development Authority (NAMDA) to support small and medium-holder farmers with farm equipment and inputs to boost food production.
Experts Speak
Head of Research at FSL Securities Limited, Mr Victor Chiazor, in an exclusive chat with NewsNGR, raised concerns that the recent decline in inflation recorded in July and August may not continue into September.
He pointed to the potential impact of an upward revision in Premium Motor Spirit (PMS) prices, which could exert additional inflationary pressure.
“The moderation in headline inflation for two consecutive months offers some relief, especially given that both headline and month-on-month inflation have eased,” he said.
Chiazor, however, noted that “While food inflation has provided some relief, core inflation remains a concern. The persistent rise in less volatile goods signals ongoing inflationary pressures that require close monitoring.”
The Director of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, identified several key factors contributing to food inflation in an exclusive interview with NewsNGR.
“Insecurity is the major and primary factor. If people cannot farm, how will food be produced? The majority of the farmers are small-scale farmers, and if they are having challenges accessing their farms across the country, then we can’t control food inflation,” Yusuf said.
He also pointed to high transportation costs, exchange rate volatility, and the lack of agricultural modernisation as significant contributors to the crisis.
Yusuf said, “Most of these farmers are in rural areas and the cost to transport their farm produce from the farm to the market, the city centres, and urban areas are very exorbitant. The Federal Government needs to address this issue by reviving our refineries, and in turn reduce the cost of diesel, PMS and the like.”
According to him, poor mechanisation and use of technology in agriculture “will continue to hinder food supply and security” because “Unlike many other sectors, where technology has been adopted to increase productivity, we haven’t done much here in agriculture, and yet the population is increasing by the day.”