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Lamentations on Hike In prices of Goods...

Peter Sonibare

Prices of Staples Increasing....| | 19 Aug, 2024
Prices of staples like rice, beans, garri, that used to be easily afforded by average Nigerians have increased by a great percentage leading over 7 million people in the country into poverty. Although the COVID-19 pandemic affected the production and distribution of staples all over the country, the prices keep increasing drastically.

According to UNICEF, Nigeria has the second highest burden of stunted children in the world with a prevalence rate of 32 percent of children under five. An estimated 2 million children in Nigeria suffer from malnutrition, but only two of every 10 children affected currently receive treatment. Malnutrition, in addition to an increased risk of death, is linked to poor production and circulation of food in the country.

According to the selected food price watch data for May 2022 released by the National Bureau of Statistics (NBS), major consumer staples showed significant increases year on year and month on month. Year-on-year, all prices of the 43 food items that make up the food watch basket increased considerably. The price of beans, which is a major commodity and Nigeria’s highest supplier of plant proteins, has gone up. The story has not been much different for rice with the staple seeing a little over a 10 percent rise in price, despite the fact that the majority of our rice consumed here is locally produced. Imported rice that enters through ports has a tariff rate of 70 percent imposed on it to discourage the business, while a ban remains on rice imported through our borders. Despite this, locally produced rice has not seen the stability in price that one might expect, with increases of over 12 percent across various types of rice.

On a month-on-month basis, aside from tomatoes, all food items have risen considerably. The monthly increase can be linked to elevated energy prices due to the rising cost of diesel, impacting the transport costs of food items. This increase was reflected in the monthly increase in food inflation, which rose 2.01 percent. These rising food costs have a significant negative impact on the lives of Nigerian citizens. Many people can no longer afford nutritious meals, leading to an increase in malnutrition and nutrition-related diseases like marasmus and kwashiorkor, which are now more common among children.

Mrs. David Ada'aja, during a phone interview, explained how things have not been easy since the increase in food prices. “The prices of food in Nigeria have increased drastically. Things are getting harder by the day, and the government is doing nothing about it.” Prices of common staples, even those produced in Nigeria, are now almost as high as or higher than imported goods. Mrs. David continued, “Although Boko Haram is also a factor in the constant increase in food prices, for example, beans that me and my mum used to buy in Minna, Niger State, we would pick whatever beans we wanted. But because of the insecurities happening in the North, few people go to the farm, and they bring whatever they find, and we have no choice but to buy, whether good or bad.”

“Even garri (cassava flakes) that we used to buy for N16,000 per bag is now N25,000 per bag, and palm oil that was N12,000 to N13,000 per 25 liters is now N17,000 to N18,000 per 25 liters. The government should act fast about it. It is really affecting us, the common people. You would see small children on the road, so thin and underfed, begging for money.” Mr. Samuel Ayobami, a trader who sells provisions at Yaba Market, lamented that the current administration knows the solution to this concern. According to him, “Before, we used to sell a carton of Indomie for N850, but now we are buying it for N2,500. The loaf of bread that I used to buy for N150 now goes for double the price due to the high cost of flour, milk, and sugar.”

“Why do I have to buy a tuber of yam at N2,000?” said Mr. Adeyemo, who wanted to buy yam at the Anifowoshe market in Somolu. He further explained how frustrated he is with the surge in food prices. “This thing is getting out of hand; feeding my children three times daily is getting difficult for me. And the government is not helping. They are not even concerned about how we fend for ourselves despite the low minimum wage and the increase in food prices. It is really getting out of hand.”

The NBS report says the average price of a bottle of palm oil increased by 42.81 percent from N593.36 in May 2021 to N847.39 in May 2022. It also rose by 0.55 percent on a month-on-month basis between April and May. The report showed that the average price of 1kg of boneless beef rose by 34.11 percent on a year-on-year basis from N1,513.43 in May 2021 to N2,029.59 in May 2022. It added that the average price of one bottle of groundnut oil stood at N1,040.88 in May 2022, showing an increase of 47.99 percent compared to N703.36 in May 2021.

“On a month-on-month basis, it rose by 3.29 percent from N1,007.68 in April 2022,”

the NBS stated.

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