Out of the 60 most consumed products in Nigeria, soap, petrol, and Ribena recorded the fastest price growth within a year, according to a report by SBM Intelligence.
The report, which was last updated on April 26, 2024, delves into the intricate dynamics of inflation in Nigeria, exploring its root causes, historical trends, current trajectory, and potential future outlook.
Of the 60 products surveyed by the African geopolitical risk consulting firm from the first quarter of 2023 to the end of the first quarter of 2024, Dudu Osun soap, petrol, Ribena, and sanitary pads have seen the fastest price growth.
“The prices of essential commodities like soap and fuel rise over 150 percent in one year. Dudu Osun (a single soap bar) is the fastest-rising item in our database, followed by petrol,” the report said.
While the prices of Dudu soap, premium motor spirit, and Ribena rose by 180 percent, 160 percent, and 150 percent respectively, sanitary pads soared to 128.6 percent, keeping the commodities out of the reach of many.
Prices of staples have equally remained high, hitting over 100 percent within the period under review.
The report noted that prices of rice, noodles (super pack), and onions went up by 83.3 percent, 105.3 percent, and 97.7 percent respectively.
It also added that Guinness Stout and Coca-cola saw their prices rise by 114.3 percent and 100 percent, buoyed largely by the devaluation of the naira which has hammered consumer’s purchasing power.
“Aside from Dudu Osun, petrol, and sanitary pads, all the other items in the top 10 are edible, reinforcing our theory that Nigerians are being squeezed tightest at the dinner table,” SBM said.
It revealed that the price of bread has equally risen by 81 percent in a year, amplified by a rise in import costs for essential commodities like wheat.
“The surge in bread can be attributed to a confluence of factors, which are the persistent devaluation of the naira, which erodes purchasing power and amplifies import costs for essential commodities like wheat, a key ingredient in bread production,” it said.
Nigeria is currently battling with the scourge of inflation which has seen prices of commodities rise to a record high, plunging many into the poverty threshold.
The country’s headline inflation came in at 33.2 percent in March while food inflation stood at 40 percent, the highest ever recorded in the country.
The rise in inflationary pressures has resulted in a cost of living crisis, driving hunger up and toughening daily livelihood.
SBM said monetary and fiscal policy challenges in the country’s economic landscape have seen the prices of essential commodities soar.
It added that addressing the underlying structural challenges facing Nigeria’s economy will be paramount in curbing inflationary pressures in the long term.
The market intelligence firm stated that improving infrastructure, enhancing security, and promoting diversification away from oil dependence are essential for fostering a more resilient and inclusive economy.
“Investments in human capital development, including education and healthcare, can contribute to enhancing productivity and reducing inflationary pressures by increasing the efficiency of resource allocation and fostering innovation,” the report stated.
