Sellers Adjust Prices of Garri, Beans, and Other Food Items as States Record High Food Prices
In recent months, the escalating cost of living in Nigeria has become a pressing concern for many, particularly in the context of rising food prices. A report from the National Bureau of Statistics (NBS) provides a stark snapshot of this worrying trend, revealing significant increases in the prices of essential food items such as tomatoes, garri, and beans.
According to the NBS’ Price Watch for selected food items in May 2024, there has been an alarming 205.36% rise in the combined average prices of tomatoes, garri, and beans compared to May 2023. Specifically, the average price per kilogram of tomatoes surged by over 30% in just one month, from April to May 2024. This stark increase accompanies a broader inflationary trend, with Nigeria’s headline inflation rate hitting 34.19% in June, climbing further from already high levels.
The food sector, in particular, felt the brunt of these rising costs, with food inflation jumping to 40.87% in the period under review. Even more concerning was the month-on-month increase in food inflation, which rose to 2.55% in June 2024, indicating an accelerating pace in the rise of food prices.
A detailed analysis by the NBS points to several culprits behind this surge. Key staples such as millet whole grain, garri, yam, and guinea corn saw notable price increases, driven by various factors including seasonality, reduced farm outputs, and increased costs of transportation and production. Moreover, the oil and fats class, along with fish and related products like dried catfish, also saw significant price increases, contributing further to the overall rise in food inflation.
The government’s recent decision to offer a 150-day window for duty-free and VAT-exempt imports has sparked controversy. While aimed at curbing the relentless rise in food prices, critics argue it could undermine local agricultural production and have unintended consequences on the livelihoods of local farmers.
An examination of the state-by-state breakdown of living costs unveils that Bauchi, Kogi, and Oyo emerge as the states most impacted by high food prices. This data, delineating regions where the cost of living has soared disproportionately, underscores the widespread nature of the inflation challenge.
As Nigeria grapples with these inflationary pressures, particularly in the food sector, analysts have called for decisive action to address the root causes of food inflation. Without significant intervention, the nation risks descending into an even more severe inflationary spiral, with far-reaching consequences for economic stability and social welfare.
The degree to which food prices have increased places immense strain on families and households across the country. With essential items becoming increasingly unaffordable, the call for effective policies to mitigate these pressures has never been more urgent.
As the country navigates through these challenging economic times, the focus remains on both short and long-term strategies to stabilize prices and ensure food security for all Nigerians. The path ahead is fraught with challenges, but with concerted effort and strategic planning, it is possible to chart a course toward economic recovery and growth.
