The prices of some selected food items have shot up by 30 per
cent according to price checks by this reporter and the Nigeria Bureau of
Statistics.
Prices of food items have
skyrocketed by as much as 30 per cent in many parts of Nigeria in the last one
year. This increase is largely caused by border closures, COVID-19 containment
measures, and insecurity, checks by PREMIUM TIMES have shown.
Other causes, according to our checks, are
flooding during the wet season, poor storage facilities, and rising demand.
These factors have meant limited availability
of food items plus rising demand, leading to rise in prices.
The prices of some selected food items have
shot up by 30 per cent according to price checks by this reporter and the Nigeria Bureau of Statistics, (NBS).
According to the NBS, the average price of one
dozen eggs medium size increased by 5.48 per cent between October 2019 and
October 2020.
Market Insight
In October 2019, a dozen eggs could be
purchased at N462.46, but in the same month in 2020, it has risen to N487.81.
Also, the average price of one kilogram (kg)
of tomato increased by 31.81 per cent in the last one year.
The medium price of 1kg of tomato in 2019 was
N233.38 but has gone up to N307.63 in 2020.
Similarly, the price of 1kg of
onion in the one year rose from N202 to N270.59 showing a 33.38 percent
increase.
Likewise, in October 2019, one could purchase
a 1kg tuber of yam at an average price of N179.75 but in 2020 it increased to
N242.87 representing a 35.11 percent increase.
The average prices of local rice and imported
rice also increased by 31.87 percent and 38.62 percent respectively.
One kg of local rice in October
2019 cost N303.69 but N400.73 in October 2020; imported rice in 2019 was
N382.59 while in 2020, it is N530.32.
From a random check at Orange Market in Karu
LGA of Nasarawa State, a bag of garri cost N15,000 but was purchased at N8,000
in October 2019.
The cost of tomato paste in October 2019 was
N50 but increased by over 100 per cent to N150 in October 2020.
The price of a bag of cassava in Abakaliki in
October 2019 was between N1,000-N1,500 but has increased to N10,000, checks by
this newspaper showed.
Prices of these food items differ depending on
its availability in a region.
The prices of
egg, tomatoes, onion, local rice and imported rice were lowest in Borno, Niger,
Borno, Zamfara, and Niger respectively.
However, the
prices were highest in Rivers, Delta, Akwa Ibom, and Abuja.
Causes of Increase in price
Post harvest losses, pandemic
This newspaper reported how Nigerian farmers
lamented post harvest losses on their farms due to natural and social
disasters.
“Farmers in Kebbi had access to their farms
but were unable to sell many of their produce due to the interstate lockdown,
which led to waste and loss of output,” Garba Yahuza said.
Donald Akule, who spoke to PREMIUM TIMES, said
prior to the lockdown, he harvested two tons of maize on a 4.8 hectare of land.
But this year he could barely get 28 bags
(100) kg of maize on the same size of land, which is equivalent to 0.1 ton of
maize.
Mr Akule narrated how farm produce was stolen
on the farms after harvest, ascribing it to hunger.
After the lockdown was eased, some farmers in
the state have not been able to access loans from the Central Bank of Nigeria’s
anchor borrowers programme, he said.
Inflation
Nigeria’s inflation rate rose
further to 14.23 per cent in October, meaning that prices of items generally
increased in the month of October.
Nigeria’s inflation has been on the rise since
the country shut its land borders. The situation became worse with the
emergence of the coronavirus which affected the global economy.
The economy is yet to recover from the
coronavirus effects and the plunge in crude prices.
This rise in the food index was caused by
increases in prices of bread and cereals, potatoes, yam, and other tubers,
meat, fish, fruits, vegetables, alcoholic and food beverages, and oils and
fats.
Experts have long anticipated
inflation in the country
“Food for example, one would have thought that
the onset of harvest season will moderate the food inflation but you and me
have read about things happening there now especially in Zamfara and Katsina
states, where the farmers are being made to pay harvest levies before the Boko
Haram people will allow them to go to their farms to harvest, so you can
imagine that being put on top the cost of the harvest,” Chike Mbonu, a business
analyst said.
“Also, it is becoming difficult to move
products from the north to the south because of supply chain challenges,” he
said.
He said the border closure was a contributory
factor, adding that the nation’s local production still falls short of our
local demand.
“So that people can borrow and
push growth and let inflation rise and hope that down the line, the output will
come and overtake the inflation and the inflation will moderate.
“The unsavoury combination of border closures,
coronavirus related disruptions, and lower interest rates have fuelled
inflationary pressures in Africa’s largest economy,” Lukman Otunuga, a senior
research analyst at FXTM, in a statement to PREMIUM TIMES said.
“With consumer prices projected to jump to
almost 14 percent in October, this will be the highest rate since February
2018. In a perfect world, the government may have deployed tight fiscal policy
to tame inflationary pressures.
“However, such a move that involves raising
taxes and limiting government spending may do more damage than good at a time
where Nigeria continues to heal wounds inflicted by COVID-19. With inflation projected
to rise amid ongoing border closures, the Central Bank of Nigeria may have
limited room to loosen monetary policy.”
Border closure
Nigeria closed its land borders to trade in
August 2019. But this has seen prices skyrocket, with inflation at a 30-month
high, posing a challenge for increased spending.
Mr Mbonu concurred that the border closure was
a contributory factor, noting that the nation’s local production still falls
short of our local demand.
Ndidi Nwuneli, managing partner
of Sahel Consulting, had blamed security officials and insecurity for being a
pain in the neck to the sector.
“We have not looked at population, climate
change, and hunger, which is going to be a major future issue if not taken care
off soon,” she added.
Flooding and poor storage
facilities
Flooding has continued to occur in Nigerian
states, with this year recording the worst flooding in 32 years, reports have
said.
This has raised concern amongst officials and
experts. President Muhammadu Buhari also lamented about the impact of the flood
on food production in Nigeria, especially rice production.
Jigawa and Kebbi are some of the states that
have benefitted from the federal government’s Anchors Borrowers Programme to
assist farmers boost rice production in the country but the states have
suffered from severe flooding.
Poor storage facilities have continued to pose
a threat to fighting food insecurity.
Some farmers have continued to complain about
storage of farm produce.
Visits to the markets in Abuja have shown that
some small scale businesses who sell food do not have storage facilities for
perishable goods.
At the close of markets, goods like tomatoes,
pepper, fruits are thrown to the roadsides or waste bins.
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