Nigeria’s cost of living is easing for the first time since late 2022, offering an unexpected respite for households and a possibility of the Central Bank of Nigeria (CBN)’s interest rate cut in September.
Monthly food inflation in Nigeria slowed to 39.53 percent in July 2024, the first decline in 18 months as prices of key staples in Nigerians’ diet –garri, tomatoes, pepper, yam and potatoes – fell on harvest and improved supply.
In a survey of major cities in Nigeria, it was found that the average prices of some key staples declined between July and August, easing the burden on cash-strapped Nigerians who have been dealing with accelerating inflation since last year, worsened by the recent fuel price hike.
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Moji Odumosu, a mother of four who was at Ketu Market to make purchases, said she can now afford to eat rice with tomato sauce owing to the sharp drop in prices after surging by over 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.”
BusinessDay survey across markets in Lagos, Nigeria’s commercial centre, found that the average price of a big basket of tomatoes has dropped 58 percent in Lagos from an average of N120,000 to N50,000.
In Onitsha, the basket costs between N60,000 and N75,000 at major markets such as Ochanja, and Ose. In Wuse and Dei Dei markets in Abuja, prices hover between N45,000 and N60,000.
A 50kg bag of white garri is now sold for an average of N65,000 as against N75,000 in July while the average price of a small bucket has declined by 42.5 percent to N2,300 from N 4,000 sold in July.
Prices of potatoes, another tuber crop mainly consumed by households, dropped by over 50 percent as farmers commence harvest of the tubers in key producing states.
A small bucket of Irish potatoes currently sells for N4,000 from an average of N12,000 in April-June, declining by 66 percent in the period in Lagos. The price of Irish potato has also dropped to N5,000 in Abuja and N4,000 in Enugu, BusinessDay gathered.
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For pepper, a small basket of Habanero currently sells for an average of N13,000 as against N35,000 at the peak of the price surge in May-June in Lagos and Abuja, indicating a 63 percent decline.
Similarly, the price of a bag of chili peppers has reduced from N120,000 to N60,000, while a small bucket that sold for N8,000 now sells for 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 in Berger. “The price drop in key staples is a respite for most households.”
The decline in locally grown staples has generated different reactions from Nigerians who see it as a window of hope from soaring food inflation, which is taking a huge chunk of their incomes.
The United Nations (UN) had, in early July 2024, predicted that 82 million Nigerians, about 64 percent of the country’s population, might go hungry by 2030 if the government failed to tackle issues limiting agricultural productivity.
In April 2023, the United Nations World Food Programme (WFP) said that one in eight Nigerians – 24.8 million people – were facing acute hunger.
Experts say that the current decline in food prices must be sustained to enable more Nigerians to 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, chief executive officer of X-Ray Consulting.
Mogaji urged the government to support farmers in cultivating more staples and tackle the issues of insecurity that have continued to reduce food production.
Read also: Why food prices remain high despite fall in inflation
As prices of major staples decelerate, farmers are asking the government to deal with issues of insecurity and make agriculture attractive again.
“Prices are truly decorating, but how long will these last?” asked Francis Okeleke, CEO of Kenfranics.
“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.
