Nigerians Grapple with Soaring Food Prices as Inflation Hits Record High

Nigerians are finding it increasingly challenging to afford basic necessities, with food inflation soaring to 40.66 per cent in May 2024. This alarming rise marks a significant increase from the 25.25 per cent recorded in June 2023, highlighting a persistent upward trend in the cost of living.

According to the latest Consumer Price Index (CPI) and Inflation report released by the National Bureau of Statistics (NBS), the headline inflation rate also increased to 33.95 per cent in May, up from 33.69 per cent in April. The CPI measures the average change over time in the prices of goods and services consumed by people for day-to-day living. This increase represents a 28-year high since March 1996, driven primarily by higher food and transport prices.

The NBS report provides a detailed breakdown of the items contributing to this surge in inflation. Key contributors include food and non-alcoholic beverages (17.59 per cent), housing, water, electricity, gas, and other fuels (5.68 per cent), and clothing and footwear (2.60 per cent). The steady climb in food prices from June 2023 to May 2024 reflects a continuous strain on Nigerian households. The price of food commodities increased steadily each month, crossing the 40 per cent mark in March 2024 and reaching 40.66 per cent in May.

Particular food items contributing to the year-on-year increase include semovita, oatflake, yam flour, garri, and beans, as well as Irish potatoes, yam, water yam, palm oil, vegetable oil, stockfish, mudfish, crayfish, beef, chicken, pork, and bush meat. These staples have become increasingly unaffordable for many Nigerians, further straining household budgets.

The report also highlights regional disparities in inflation rates, with Bauchi (42.30 per cent), Kogi (39.38 per cent), and Oyo (37.73 per cent) being the most affected states. In contrast, Borno (25.97 per cent), Benue (27.74 per cent), and Delta (28.67 per cent) recorded the slowest rises in headline inflation.

Several factors have contributed to the rising food prices, including government policies such as the removal of petrol subsidies. These policies have exacerbated the inflationary pressures, weakening the purchasing power of many citizens and making it increasingly difficult for households to afford daily meals. At the March Monetary Policy Committee meeting, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, pointed out that the government’s large-scale purchase of foodstuffs as palliatives is also contributing to the escalating food inflation.

As Nigerians continue to grapple with these economic challenges, the need for effective and sustainable policy measures becomes ever more pressing. Addressing the root causes of inflation and implementing strategies to stabilise food prices are crucial steps towards ensuring that all citizens can meet their basic needs and maintain a reasonable standard of living.