Food prices surge by over 180% in Nigeria

By Doris Isreal Ijeoma Economic hardship has worsened for Nigerians as prices of garri, beans, yam, and tomatoes increased by at least 180 percent in June 2024, compared to the same period last year amid looming planned nationwide protests. The National Bureau of Statistics disclosed this in its June Selected Food report released on Wednesday. The report considered prices of staple foods, including garlic, beans, tomatoes, yam and potatoes. The data showed that food prices increased on a year-on-year basis and month-on-month basis. According to specific food item analysis, one kilogram of garri (white) went up by 181.66 percent on a year-on-year basis from N403.15 in June 2023 to N1,135.51 in June 2024, while there was an increase of 1.86 percent on a month-on-month basis. Also, the price of 1kg of beans brown (sold loose) stood at N2,292.76, indicating a rise of 252.13 percent YoY from N651.12 recorded in June 2023. Similarly, 1kg of yam tuber increased by 295.79 percent on a year-on-year basis from N510.77 in June 2023 to N 2,021.55 in May 2024. On a month-on-month basis, it increased by 52.87 percent from N 1,322.36 in May 2024 to N 2,021.55 in June 2024. Also, the price of tomatoes (1kg) increased Year-on-Year (YoY) by 320.67 percent to N2,302.26 in June 2024 from N547.28 in June of last year (2023). The report added that there was also a notable price increase of Irish potato by 288.5 percent on a year-on-year basis from N623.75 in June 2023 to N2,423.27 in June 2024. On a state-by-state level analysis, Lagos state recorded the highest price of 1kg tuber of yam at N3,376.54, while Adamawa recorded the lowest price at N1,100.00. Gombe recorded the highest average price of 1kg Garri (white) sold loose at N1,619.27, while the lowest was reported in Taraba at N900. This comes as June’s core and food inflation stood at 34.19 percent and 40.87 percent respectively. The implication is that the purchasing power of more Nigerians will continue to decline, worsening the misery index. The development comes as Nigerians gear up for a planned national protest scheduled for 1st August, 2024. Meanwhile, President Bola Ahmed Tinubu had called on the citizens to shelve the planned protests. According to him, the government needed time for its policies, including a new minimum wage of N70,000 to impact Nigerians positively. The government’s plea comes as Nigerian governors and ministers target dialogue to halt the planned protest.

Agric Minister reveals When Food prices will crash in Nigeria 

As Nigerians hit the streets to protest cost of living crisis, especially high cost of food and hunger, the Minister of Agriculture and Food Security, Sen Abubakar Kyari, Wednesday, disclosed that in 180 days food prices will crash. Kyari stated this on his X (formerly Twitter) handle, where he unveiled measures that will be implemented over the next 180 days. He said: “Our administration has unveiled a series of strategic measures aimed at addressing the high food prices currently affecting our nation. These measures will be implemented over the next 180 days; “150-Day Duty-Free Import Window for Food Commodities •Suspension of duties, tariffs, and taxes for the importation of certain food commodities through land and sea borders. These commodities include maize, husked brown rice, wheat, and cowpeas. “Imported food commodities will be subjected to a Recommended Retail Price (RRP). We understand concerns about the quality of these imports, especially regarding their genetic composition. The government assures that all standards will be maintained to ensure the safety and quality of food items for consumption. “The Federal Government will import 250,000 metric tons of wheat and 250,000 metric tons of maize. These semi-processed commodities will be supplied to small-scale processors and millers across the country. “Engagement with relevant stakeholders to set a GMP and purchase surplus food commodities to restock the National Strategic Food Reserve. “Ramp-Up of Production for the 2024/2025 Farming Cycle Continued support to smallholder farmers during the ongoing wet season farming through existing government initiatives; Strengthening and accelerating dry season farming nationwide; “Embarking on aggressive agricultural mechanization to reduce drudgery, lower production costs, and boost productivity. ; Collaborating with sub-national entities to identify irrigable lands and increase land under cultivation; Working closely with the Federal Ministry of Water Resources and Sanitation to rehabilitate and maintain irrigation facilities under river basin authorities across the federation. “Developing strategic engagement for youth and women for immediate greenhouse cultivation of horticultural crops such as tomatoes and pepper to increase production volume, stabilize prices, and address food shortages; Fast-tracking ongoing engagements with the Nigerian Military to rapidly cultivate arable lands under the Defence Farms Scheme and encouraging other para-military establishments to utilize available arable lands for cultivation. “Renewed Hope National Livestock Transformation Implementation Committee; This committee has been inaugurated on Tuesday, July 9, 2024, to develop and implement policies prioritizing livestock development in alignment with the National Livestock Transformation Plan, and a ministry of Livestock Development has been created. “Enhancement of Nutrition Security •Promoting the production of fortified food commodities. •Supporting the scale-up of the Home Garden Initiative by the Office of the First Lady of the Federal Republic of Nigeria. Meanwhile, he also explained that, “Over the next 14 days, in close collaboration with the Presidential Food Systems Coordinating Unit (PFSCU) and the Economic Management Team (EMT), we will convene with respective agencies to finalize the implementation frameworks. We will ensure that information is publicly available to facilitate the participation of all relevant stakeholders across the country.” However he said, “The success of these measures hinges on the cooperation and collaboration of all relevant MDAs and stakeholders. “As our nation confronts this critical food security challenge, I reiterate President Tinubu’s unwavering commitment to achieving food security and ensuring that no Nigerian goes to bed hungry. “My team and I will work swiftly and diligently to actualize these crucial policies, ensuring food security for everyone in the immediate term while continuing our strategies for long-term intervention.

Food To Drive Nigeria’s Inflation Trend, Says Firm

CAPE Economic Research and Consulting has stated that food inflation will continue to drive inflation in Nigeria. In its Economic Newsletter for November, which was made available to NATIONAL ANCHOR on Friday, the economic think- tank said headline food and core inflation are expected to rise to 27.41, 31.01, and 22.50 percent respectively. While noting that inflation would heighten though at a moderate pace, the firm said the impact of food prices and exchange rates may play a strong role. “However, housing and utility prices had a more robust impact in October 2023 than in September 2023. This suggests that the impact of an increase in energy prices and exchange rate continues to permeate into the economy and would continue to reflect over a 12-month period at the least, through a base effect,” it said. On the Federal Accounts Allocation Committee (FAAC) allocation, the research firm noted that there may be a moderation in FAAC distribution for October 2023 adding that it may not dampen inflationary pressure significantly. “The Federation Account Allocation Committee (FAAC) distributed the total sum of N903.48 billion among the three tiers of government in the month of October 2023 for revenue collected in September 2023. The amount distributed was lower than the N923.01 billion shared in September 2023 by N19.53 billion representing a decrease of 2.1 per cent. “A further breakdown shows that the Federal Government received N320.54.25 billion; States, N287.07 billion Local Government, N210.90 billion. Thirteen percent derivation fund distributed among beneficiary states amounted to N84.97 billion. Revenue allocation to all the three tiers of government generally declined in October 2023 except for the 13 percent derivation fund. “The decline was driven by the shortfall in non-oil. receipts, particularly, Companies Income Tax (CIT), Import and Excise Duties, and Value Added Tax (VAT). Collections from Petroleum Profit Tax (PPT), and Oil & Gas Royalties increased during the period,” it said.