The prices of food in Nigeria is increasing rapidly despite the drop in inflation figures announced by the Nigerian Bureau of Statistics recently

By Anayo Ezugwu

DESPITE the Nigeria Bureau of Statistics, NBS statistics showing that the rate of inflation dropped for the 16th month from 12.48 percent in April to 11.61 percent in May, Nigerian families are still grappling with increase in the prices of food and essential commodities in the country. Prices of staple foods such as rice, beans, yam and cassava flakes have gone up in the market.

Market survey conducted by Realnews in Lagos, for the month of May, revealed that the prices of some foodstuffs differ minimally in different markets. For instance, the price of rice, beans, yam, cassava flakes, palm oil and groundnut oil in Mile 12 market is different from what obtains in other major markets in the state. Mile 12 food prices are a lot cheaper than other markets apparently because it is a major depot.

The survey also showed that presently the price of rice is gradually going up as a 50 kilogramme bag of rice is sold between N15,000 and N16,500 depending on the brand of the product as against N13,500. A bag of (Iron) beans is sold for N57,000, compared to N55,000 in April. For (Brown) beans, a bag remains at N38,000.

Currently, the price of 50 kilogramme bag of garri (White) is N7,000 as against N6,500 in April, while yellow garri is sold for N7,500 as against N6,500. Realnews also found out that a gallon of red oil 25 litres is N9,000 compared to N8,500 in April, while 25 litres of groundnut oil is 10,000 against 11,000 sold in April. A kilo of chicken is now N1,300 as against N1,100, while a kilo of fish (Titus) goes for N800 compared to N1000 previously.

Corroborating Realnews investigations, the NBS report for the month of May, showed increase in food inflation. The NBS stated that the composite food index, which measures food inflation rose month-on-month, to 1.33 percent in May from 0.91 percent in April, representing the fourth consecutive monthly increase in food inflation. The composite food index rose by 48 basis points from February to May.

This rise in the index was caused by increases in prices of potatoes, yam and other tubers, vegetables, fish, bread and cereals, fruits and meat. The average annual rate of change of the food sub-index for the 12-month period ending May 2018 over the previous 12-month average was 18.36 percent, 0.53 percent points from the average annual rate of change recorded in April (18.89) percent.

This also confirms projection by FSDH Merchant Bank analysts who said that the country risks further decline in food supply, which could lead to upsurge in food prices if the herdsmen/farmers clashes across the country remain unchecked. They stated this in the bank’s Inflation Watch report while also projecting a further drop in May inflation rate to 11.5 percent from 12.48 percent recorded in April.

The report stated: “FSDH Research notes that there is a potential increase in the local prices of imported food items because of the faster than expected increase in the international food prices. Looking beyond the May inflation figure, the developments in the domestic agricultural sector may place upward pressure on prices if not checked.

“FSDH Research observes that the agricultural Gross Domestic Product, GDP, growth rate in first quarter (Q1’ 2018) recorded the lowest growth rate in the last 18 quarters since 2014. The insecurity challenges in the food producing states in the country may be responsible for this development. If the trend continues, food supply may drop leading to escalating prices. Thus, both local and imported food prices may place upward pressure on inflation rate.”

Jun. 15, 2018 @ 14:27 GMT |