Food Prices Increased by 50.1% in February, See Why

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CEM REPORT | Prices of food have continued to rise in Nigeria according to the report just released by the Nigerian Bureau of Statistics (NBS) on prices of selected food

The Selected Food Price Watch for the month of February 2022 shows that the average price of 1kg of beans (white, black eye, sold loose) rose by 50.1 percent from N 331.48 in February 2021 to N 497.54 in February 2022. Similarly, there was an increase of 3.34percent from N481.47 it sold in January 2022 to N497.54 in February 2022.

Bread Sliced 500g, also, increased year-on-year by 34.11 percent from N326.61 in February 2021 to N438.03 in February 2022. On month-on-month, the average price of this item increased by 4.63 percent (N418.65) in February 2021. Likewise, the average price of 1kg Tomato increased from N367.01 in January 2022 to N393.08 in February 2022 indicating 7.10 percent rise. Year-on-year analysis shows that the average price also rose by 46.03 percent (N 269.18) in February 2021.

In the same vein, the average price of Agric eggs (medium size price of one) increased by 2.65 percent from N58.28 in January 2022 to N59.82 in February 2022. Also, the average price of 1kg Yam tuber rose by 39.92 percent from N242.82 in February 2021 to N339.76 in February 2022.

Similarly, the average price of Groundnut oil: 1 bottle, specify bottle stood at N971.01 in February 2022; this shows an increase of 3.18 percent (N941.10) in January 2022. In the same way, the year-on-year analysis shows an increase of 43.46 percent (N676.87) in February 2021.

State price distribution shows that Ebonyi recorded the highest average price of beans (white, Black eye, sold loose) with N880.59 and the lowest was reported in Bauchi with N243.67. Furthermore, the highest average price of Bread Sliced 500g was recorded in Abuja with N630.33 while the lowest was recorded in Gombe with N255.2. Taraba recorded the lowest price of 1kg Tomato with N133.39 while the highest price was reported in Edo with N711.67.

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Following market observations and statistical report, the continuous increase in prices without corresponding increase in wages mounts tremendous pressure on income and erode purchasing power of an average consumer in Nigeria.

Factors responsible for the unending rise in price of commodities in the country exist in web and complicated chain. Insecurity and poor infrastructure gives rise to low productivity, there is therefore heavy dependence on importation with its pressure on the nation’s foreign exchange leading to a devalued currency. This has raised cost of importation which is past to final consumers as increased prices of commodities.

Wheat for instance which is the major material for bread production is sourced from other countries as Nigeria only produce about 12 percent of its demand. Scarcity of wheat in international market such as it is currently experienced as a result of Russian Ukraine war, leads to increase in price. Being complicated by the value of naira, the product comes into Nigeria with a cost

Beans production has been hampered for several months by the spate of insecurity within farming communities. Farmers are scared to go for farming activities for fear of being attacked or kidnapped with its consequent reduction in the volume of beans produced in the country. Therefore prices are bound to rise since demand outweighs supply.

Since the country depends on importation of petroleum products, price of diesel has affected the cost of producing animal feeds as feed millers rely on generators to power their milling machines. Poultry farmers now by feeds at high price raising cost or maintaining layers. All these are then past to consumers by raising price of eggs

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