Nigeria’s cost of living has eased for the first time since late 2022, giving households an unexpected reprieve and raising the possibility that the Central Bank of Nigeria (CBN) will cut interest rates in September.
Nigeria’s monthly food inflation rate slowed to 39.53 percent in July 2024, its first decline in 18 months, as improved harvests and supplies led to lower prices of garri, tomatoes, peppers, yams, and potatoes, all staple foods for Nigerians.
A survey in major Nigerian cities showed that the average prices of some major basic commodities fell from July to August, easing the burden of cash-strapped Nigerians who have been struggling with rising inflation since last year, exacerbated by the recent fuel price hike.
Moji Odumosu, a mother of four children shopping at Ketu market, said she can now afford to buy rice with tomato sauce as prices have plummeted after rising by more than 300 percent four months ago.
“The recent drop in tomato and garri prices is a big relief for my family. The price decline has ensured we eat better now than before,” Odumosu, who earns N60,000 as salary, said.
“We could not afford tomatoes – rich in vitamins and minerals for my children for over four months because of the high price then, but now we consume it daily since the sharp drop.”
Journalists survey across markets in Lagos, Nigeria’s commercial capital, found that the average price of a large basket of tomatoes in Lagos has fallen by 58 percent from an average of 120,000 naira to 50,000 naira.
In Onitsha, the price of a basket ranges from 60,000 naira to 75,000 naira in major markets such as Ochanja and Ose. In Abuja’s Wuse and Dede Markets, the price ranges from 45,000 naira to 60,000 naira.
A 50kg bag of white garri is currently selling for an average of 65,000 naira (down from 75,000 naira in July), while the average price of a small bucket has fallen by 42.5 percent to 2,300 naira from 4,000 naira in July. The price of potatoes, another tuber vegetable mostly consumed at home, has fallen by more than 50 percent as farmers in major producing states begin harvesting the tubers.
A small bucket of Irish potatoes now sells for 4,000 naira, compared with an average price of 12,000 naira from April to June, a drop of 66 percent in Lagos. According to Journalists, the price of potatoes from Ireland has also fallen to 5,000 naira in Abuja and 4,000 naira in Enugu.
On peppers, a small basket of habaneros now sells for an average of 13,000 naira, compared with 35,000 naira at the peak of the price hike in May to June in Lagos and Abuja, a drop of 63 percent.
Similarly, the price of a bag of chilli has dropped from N120,000 to N60,000, while a small bucket that previously cost N8,000 now costs N3,500.
“Garri and potatoes are the food for the common man and when the prices surged a few months ago, lots of people could not afford it and were not feeding properly,” said Olamide Adedeji, a caterer at Berger. “The price drop in key staples is a respite for most households.”
The decline in locally produced staple foods has drawn mixed reactions from Nigerians, who see it as a ray of hope in the face of rising food inflation that is eating up a large part of their income.
The United Nations (UN) predicted in early July 2024 that 82 million people, about 64% of Nigeria’s population, could go hungry by 2030 if the government does not address issues that limit agricultural productivity.
In April 2023, the UN World Food Programme (WFP) said one in eight Nigerians (24.8 million people) suffer from severe hunger. Experts say the current fall in food prices needs to be sustained to ensure more Nigerians have access to food and nutrients.
“Household pressures remain skewed to food and with the recent drop in prices, especially in key staples, pressure will be reduced on them,” said AfricaFarmer Mogaji, CEO of X-ray Consulting.
Mogaji called on the government to help farmers grow more staples and address insecurity issues that further reduce food production.
As prices of key staples fall, farmers are calling on the government to address security issues and make farming attractive again.
“Prices are truly decorating, but how long will these last?” asked Francis Okereke, CEO of Kenfranix.
“Insecurity is still a major issue for us. Some of us have abandoned our farms in the central part of Nigeria. Secondly, dollar scarcity is still with us. Petrol prices are getting higher, eroding the gains we have seen on food prices. So, we need a holistic approach, not spur-of-the moment approach, to get food on the tables of Nigerians,” he advised.
