Nigeria’s food inflation quickens to 37.7% in September

Food inflation in Africa’s most populous nation accelerated to 37.7 percent in September after a two-month decline, adding pressure to households.

The Consumer Price Report of the National Bureau of Statistics (NBS) shows that food inflation surged 23 percent on a year-on-year basis from the 30.6 percent it recorded in the corresponding period of 2023.

On a month-on-month basis, the food inflation rate in the period was 2.64 percent which shows a 0.27 percent increase compared to 2.37 percent recorded in August.

In July prices of key food staples saw a sharp drop as new harvest season commenced. However, the recent petrol hike has reversed the decline and food prices are surging again.

A litre of petrol now sells for an average of N1,100 from an average of N568/litre in June, sending transportation costs across the country to record high.

Read also: Food inflation seen reversing on fuel price hike

Petrol-reliant vehicles ferry agricultural products from rural areas to townships and state markets. And truck drivers often raise their fares each time petrol prices rise.

The NBS said, “The rise in food inflation on a year-on-year basis was caused by increases in prices of the following items: guinea corn, rice, maize grains, beans, yam, and cassava tuber.”

A Bancorp Securities Limited report noted that the increase in fuel prices stands as a core driver for September’s food inflation surge.

Also, the incidents of flooding reported across the country have cut down food production and driven price increases.

The NBS further reports that food inflation on state analysis was highest in Sokoto at 50.47 percent, Gombe at 44.09 percent, and Yobe 43.51 percent.

While it recorded the slowest rise on a year-on-year basis in Kwara at 32.45 percent, Rivers at 32.80 percent, and Kogi at 2.83 percent.

Experts worry that food prices will remain a critical concern due to persistent challenges in agricultural productivity, reliance on imports, and rising fuel costs.