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.

Nigeria’s Q2 Capital Importation Decreases By 32.9% – NBS

In the second quarter of 2023, total capital importation into Nigeria stood at $1,030.21 billion, lower than $1,535.35 billion recorded in the second quarter, indicating a decrease of 32.90 per cent, the National Bureau of Statistics (NBS), has said. The bureau noted in its Nigeria Capital Importation Q2 2023, when compared to the preceding quarter, capital importation fell by 9.04 per cent from $1,132.65 billion in Q1 2023. The statistics agency stated that Other Investment ranked top accounting for 81.28 per cent ($837.34 million) of total capital importation in Q2 2023, followed by Portfolio Investment with 10.37 per cent ($106.85 million) and Foreign Direct Investment (FDI) with 8.35 per cent ($86.03 million). “The production sector recorded the highest inflow with $605.04 million, representing 58.73 per cent of total capital imported in Q2 2023, followed by the banking sector, valued at $194.58 million (18.89%), and Shares with $68.63 million (6.66%). “Capital importation during the reference period originated largely from the United States with $271.92 million, accounting for 26.39 per cent, followed by Singapore and the Republic of South Africa with $177.44 million (17.22%) and $136.95 million (13.29%) respectively. “Lagos state remained the top destination in Q2 2023 with $778.06 million, accounting for 75.52 per cent of total capital, followed by Abuja (FCT), with $194.28 million (18.86%). “First Bank of Nigeria Limited received the highest capital into Nigeria in Q2 2023 with $323.13 million (18.23%), followed by Citibank Nigeria Limited with $187.77 million (12.23%) and Rand Merchant Bank with $126.03 (6.47%), the bureau said.  

2,733 Road Accidents Occurred In Q1 2023 – NBS

The National Bureau of Statistics (NBS) has said that the total number of 2,733 road traffic crashes occurred in the first quarter of 2023. The bureau, in its Road Transport Data Q1 2023, indicated a 24.44 per cent decrease from the previous quarter which recorded 3,617 and an 18.30 per cent fall from 3,345 in Q1 2022. It also noted that serious cases of traffic crashes stood at 1,801 in Q1 2023, compared to fatal and minor cases with 677 and 255 respectively. However, there was a decline in the three categories of cases in the quarter under review relative to the preceding quarter. “A total of 1,185 males were killed in Q1 2023, accounting for 82.23% of 1,441 persons killed, compared to 256 (17.77%) females killed. “Also, a total of 6,386 males were injured during the period, indicating 76.58% of 8,339 injured persons compared to 1,953 (23.42%) females injured. “A total of 4,095 vehicles were involved in road traffic crashes in Q1 2023, lower compared to the previous quarter which recorded 5,407, indicating a decrease of 24.26%,” the report said. By region, the North-Central recorded the highest number of crashes in Q1 2023 with 973, followed by the South-West with 678, while the South-South had the least with 122. “Similarly, the North-Central recorded the highest number of casualties with 2,928, followed by the North-West with 2,323, while the South-South recorded the least with 464,” the report added.

Nigeria’s H1 2023 foreign trade data raises questions about economic balance

In the first half of 2023, Nigeria engaged in trade amounting to N24.79 trillion in goods and services with global partners, resulting in a N2.2 trillion trade surplus, as reported by the National Bureau of Statistics (NBS). While these figures indicate a -12.68% decline compared to the N28.39 trillion traded in the same period of 2022, they also signify a significant +258% year-on-year (Y-o-Y) increase in trade surplus, highlighting a potential enhancement in Nigeria’s international net trade. Total imports for H1 2023 amounted to N11 trillion, with total exports reaching N13.50 trillion, contributing N2.2 trillion to the country’s foreign exchange earnings. The data reveals that crude oil remains Nigeria’s dominant export product for H1 2023, constituting approximately 79.50% of exports, while other oil products make up 10.57%, manufacturing 2.54%, and agriculture 4.15%. This suggests that despite reduced crude oil production, oil still heavily influences the nation’s exports, indicating a lack of comparative advantage in non-oil products. In contrast, Nigeria’s imports for H1 2023 predominantly comprised manufactured products at 47.99%, oil products at 33.17%, agriculture at 8.21%, and raw materials at 9.95%. Analysts believe that due to substantial domestic productivity gaps, reliance on imported fuel is likely to continue undermining the country’s foreign exchange position. A breakdown of trading partners reveals that Nigeria’s largest trading partners are Europe (46% of total exports) and Asia (25%), while intra-African trade accounts for a modest 19%. Likewise, Nigeria’s primary sources of imports are Asia (42%) and Europe (38%), with other African nations contributing 15% to imports. The relatively limited trade relations with other African countries in favor of India (Asia), the Netherlands (Europe), and the United States (America) may restrict Nigeria’s ability to maximize the benefits of the African Continental Free Trade Agreement (AfCFTA). *Culled from Proshare

Nigeria’s intercity transport rises by 98.88% in June -NBS

The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 percent from N649.59 in May 2023 to N1,285.41 in June 2023, the National Bureau of Statistics (NBS) has said. In its Transport Fare Watch of June 2023 posted on its website, the NBS stated that on a year-on-year basis, it rose by 120.63% from N582.61 in June 2022. Analysts have attributed the astronomical increase to fuel pump price hike following the removal of fuel subsidy by President Bola Ahmed Tinubu. Transport Fare Watch for June 2023 covers the following categories: bus journey within the city per drop constant route; bus journey intercity (state route) charge per person; air fare charge for specified routes single journey; journey by motorcycle (Okada) per drop; and water way passenger transport. In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09% on a month-on-month basis compared to N4,002.16 in May 2023. “On a year-on-year basis, the fare rose by 55.25% from N3,662.87 in June 2022. In air travel, the average fare paid by air passengers for specified routes’ single journey increased by 4.93% from N74,948.78 in May 2023 to N78,640.54 in June 2023. On a year-on-year basis, the fare rose by 40.22% from N56,082.64 in June 2022. “The average transport fare paid on Okada transportation was N618.52 in June 2023 which was 33.14% higher than the rate recorded in May 2023 (N464.55),” the statistics bureau stated. On a year-on-year basis, the fare rose by 48.34 percent when compared with June 2022 (N416.97). For water transport (waterway passenger transportation), the average fare paid in June 2023 increased to N1,366.22 from N1,045.15 in May 2023. On a year-on-year basis, it increased by 44.84% from N943.26 in June 2022