• Friday, April 19, 2024
businessday logo


Nigerians’ spend on basic food items rise 17.5% – Report

Nigerians’ spend on basic food items rise 17.5% – Report

The cost of basic food items required for survival by an average Nigerian family rose by 17.5 percent to N48,130 in January 2023 from N40,980 in the same period of last year, according to a 2023 Minimum Wages report.

The report by Picodi.com, an international e-commerce platform, said the amount (N48,130) is 60.4 percent higher than the country’s monthly minimum net wage of N30,000.

“This means that the wages of those paid the least increased slower than the food prices and the minimum wage is not enough to cover even such a basic basket of products,” it said.

It added that in Asia-Pacific countries such as India, Indonesia, the Philippines, Thailand, and Vietnam, basic food costs over half of the minimum income.

The basic food items put in the basket by the report are milk, bread, rice, eggs, cheese, beef, fruits, and vegetables.

According to the report, the price of 10 litres of milk was N12,960 as of January, 10 loaves of bread cost N5,390, 1.5kg of rice was N1,670, 20 pieces of eggs cost N1,400, and 1kg of cheese was N1,840. Others are 6kg of beef priced at N12, 310, six kg of fruits (N5, 520), and 8kg of vegetables N7, 040.

Picodi.com said although the list is very limited, the products in the given amounts are enough to meet the minimum nutrient requirement for an average adult.

The report further revealed that Nigeria ranked least out of 67 countries in its best basic food price index.“Nigeria is in the last (67th) place in the ranking, with a ratio of 160.4 percent, being passed by countries such as South Africa (35.6 percent, 50th place), the United States (12.5 percent, 11th place) and the United Kingdom (6.5 percent, first place).”

“In only seven out of 67 countries included in our ranking, the minimum wage did not increase compared to January 2022. Among others, these countries are Israel, Hong Kong and Nigeria,” it said.

Read also: Nigeria among countries with lowest food security – IMF

Inflation in Africa’s biggest economy surged to a 17-year high last year on the back of the fallout of the Russia-Ukraine war.

Data from the National Bureau of Statistics show the country’s inflation rate rose to 21.34 percent in December 2022, the highest in 17 years from 21.47 percent in the previous month.

Food inflation, which constitutes 50 percent of the inflation rate, rose to 23.75 percent in December from 24.13 percent.

“Nigeria’s accelerated inflation growth has eroded the N30,000 minimum wage by 55 percent and widened the poverty net with an estimated five million people in 2022,” the World Bank has said in its latest Nigeria Development Update report.

It said higher inflation in 2022 is estimated to have pushed an additional five million Nigerians into poverty between January and September 2022, mainly through higher prices of local staples- rice, bread, yam, and wheat, especially in non-rural areas.

“Between 2020 and 2022, for instance, the inflation shock has pushed an estimated 15 million Nigerians into poverty.”
The World Bank report highlighted that the minimum wage, which was $82 in 2019, had dropped to $26.

Shubham Chaudhuri, World Bank’s country director for Nigeria, said over the years, the country which has been floating along and riding on the oil price movement, is now at a critical junction.

“Nigeria has a choice to implement critical macroeconomic and structural reforms that can reduce crisis vulnerabilities and increase growth. Doing so will lift per-capita incomes, sustainably reduce poverty and deliver better life outcomes for many Nigerians,” he said.