CEM REPORT, AGROFOOD | In the wake of the new year, Nigeria finds itself grappling with a worrying trend: soaring food prices. The Food Price Watch report for January 2024 paints a stark picture of the economic challenges facing households as staple food costs continue to climb. The data reveals substantial year-on-year and month-on-month increases across various food items, exacerbating the financial strain on already burdened citizens.
According to the Selected Food Price Watch, the average price of essential commodities has witnessed alarming surges compared to the previous year. The cost of 1kg of Rice local sold loose has surged by a staggering 98.47% year-on-year, while the price of Beef boneless has risen by 37.08% over the same period. Beans brown (sold loose) saw a significant increase of 64.42% in its average price, with onion bulb and Tomato experiencing hikes of 97.38% and 80.98%, respectively.
On a month-on-month basis, the escalation persists, with Rice local sold loose, Beef boneless, Beans brown, onion bulb, and Tomato registering increases of 11.31%, 5.37%, 12.16%, 9.33%, and 3.82%, respectively. These successive spikes compound the financial strain on consumers, impacting their purchasing power and household budgets significantly.
Regional Disparities in Food Prices
The state profile analysis unveils notable regional variations in food prices across Nigeria. Abuja emerges with the highest average price for 1kg of Rice local sold loose at N1,350, while Benue records the lowest at N800.64. Similarly, Abuja tops the list for Beef boneless at N4,000, contrasting with Gombe State’s lowest recorded price of N2,639.
The South-South region claims the highest average price for Beans brown (sold loose) at N1,296.66, with Adamawa reporting the lowest at N677.23. Rivers State tops the charts for onion bulb at N1,454.09, while Zamfara registers the lowest at N435.71. Additionally, Delta State leads in Tomato prices at N1,474.79, whereas Kano records the lowest at N422.7.
Zone-wise Analysis of Food Prices
Analyzing the data by zone sheds light on significant disparities in food prices. The North-Central zone reports the highest average price for Rice local sold loose at N1,083.36, while the North-East records the lowest at N941.57. The South-East and South-West zones lead in Beef boneless prices at N3,761.32 and N3,608.76, respectively, contrasting with the North-East’s lowest average price of N2,854.86.
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The South-South zone tops the charts for Beans brown (sold loose), onion bulb, and Tomato prices at N1,296.66, N1,331.74, and N1,321.47, respectively. Meanwhile, the North-West zone reports the lowest prices for these commodities, reflecting the stark regional variations in food affordability and accessibility.
Impact
The rising costs of essential food items are likely to have a significant impact on Nigerians, particularly those living on low incomes. With household budgets already stretched thin, these increases could lead to food insecurity and force individuals to forego other essential needs. The report doesn’t delve into the specific causes of the price increases, but potential factors could include:
- Disruptions in the global supply chain: This could have led to higher import costs for certain food items.
- Domestic production issues: Insufficient harvests or disruptions in local agricultural activities could also be contributing factors.
- Rising fuel prices: Transportation costs and overall inflation could be impacting the final prices paid by consumers.
Looking Forward:
The NBS report serves as a crucial indicator of the current state of food security in Nigeria. Addressing the issues behind these price increases is essential to ensure food affordability and alleviate the burden on consumers. Further analysis and potential government interventions might be necessary to tackle this ongoing challenge and ensure food security for all Nigerians.
As Nigeria grapples with escalating food prices, policymakers face the urgent task of implementing measures to alleviate the burden on citizens. Targeted interventions such as subsidies, market reforms, and investment in agricultural productivity are imperative to ensure food security and alleviate the financial strain on households nationwide.
The January 2024 Food Price Watch underscores the pressing need for proactive measures to address the burgeoning crisis and safeguard the welfare of Nigerian citizens amidst economic challenges.
