News in Brief:
– Food inflation in Nigeria is skyrocketing, with prices surging 40.87% year-on-year in June 2024, primarily driven by increases in staples like cereals, tubers, oils, and fish.
– This escalating crisis is causing immense hardship for Nigerians and demands urgent government intervention.
Nigerians are continuing to grapple with the harsh realities of soaring food prices as inflation continues to erode purchasing power. The situation is primarily driven by increases in staples like cereals, tubers, oils, and fish.
The latest data from the National Bureau of Statistics (NBS) paints a grim picture, with food inflation rate reaching a staggering 40.87 year-on-year.
Effectively, the unrelenting rise in food prices has pushed the overall inflation rate to 34.19% in June 2024, marking a 0.24% increase from 33.95% in the previous month.
This means that the cost of living has become increasingly unbearable for ordinary Nigerians, who are struggling to put food on the table.
Key factors contributing to food inflation
Several factors are contributing to the persistent food inflation crisis. These include:
- Insecurity: Rising insecurity in food-producing regions has disrupted farming activities, leading to reduced output and higher prices.
- Climate change: Extreme weather events, such as floods and droughts, have damaged crops and livestock, further exacerbating food shortages.
- Exchange rate depreciation: The weakening naira has made imported food items more expensive, pushing up prices in the local market.
- Supply chain disruptions: Logistics challenges, including high transportation costs, have contributed to inflationary pressures.
The consequences of this crisis are far-reaching. Families are making difficult choices about which food items to purchase, often opting for cheaper but less nutritious options.
Consequently, malnutrition and hunger are on the rise, particularly among vulnerable populations such as children and the elderly.
Government intervention
Meanwhile, in a bid to stem the rising costs of food in the country, the government has implemented various measures, including:
- Central Bank of Nigeria (CBN) interventions: The CBN has provided loans to farmers and processors to boost production.
- Importation of food items: Efforts are underway to increase food imports to augment local production. This also includes the suspension of duties, tariffs, and taxes for the importation of certain food commodities through land and sea borders
However, some analysts argue that these measures have had limited impact, and more comprehensive and sustainable solutions are needed to tackle the root causes of the problem.
Prominent among the voices in this regard is the President of the African Development Bank, Dr. Akinwumi Adesina. He stated that the new policy on food imports could harm local agriculture and investments. He instead encouraged the boosting of local food production for long-term food security and stability.
Meanwhile, as the situation continues to deteriorate, there is growing concern about the potential social and economic consequences of the food inflation crisis. Experts warn that unless urgent steps are taken to address the underlying factors, the situation could worsen in the coming months.
