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- The National Bureau of Statistics says the average food price reached N2,920 in December 2024
- The South-East region witnessed the highest increase of N3,484.48
- The surge in food prices has economic implications
The National Bureau of Statistics (NBS) says the average food price increased to N2,920.13 in December from N2,862.14 in November 2024.
According to the NBS’ Selected Food Price Watch December 2024 report released on Friday, January 24, the amount shows a 91.6 per cent year-on-year increase from the average food price of N1,524.63 recorded in December 2023.
The NBS surveyed the prices of about 40 food items including beans, beef, bread, catfish (obokun), dried fish, frozen chicken, garri, groundnut oil, Irish potato, rice, and others.
Recall that the NBS stated that the average food price increased by 97 per cent from N1,449.57 in November 2023 to N2,862.14 in November 2024, driven by factors such as insecurity, the impact of climate change, high transportation costs, and naira depreciation.
Details of price changes for specific food items
According to the report, the average price of 1kg of beans (brown, sold loose) was N2,501.32 in December 2024, representing a 187.29 per cent year-on-year increase compared to N870.67 in December 2023.
However, the food item's price recorded an 8.07 per cent month-on-month decrease from N2,720.96 in November 2024.
The price of 1kg of onion bulbs increased by 111.74 per cent year-on-year from N971.86 in December 2023 to N2,057.81 in December 2024.
On a month-on-month basis, the price of 1kg onion bulbs increased by 9.57 per cent from N1,878.00 in November 2024.
The report further disclosed that the price of one litre of palm oil increased by 81.18 per cent year-on-year from N1,425.32 in December 2023 to N2,582.35 in December 2024. On a month-on-month basis, the price rose by 4.68 per cent from N2,466.79 in November 2024.
Average price of food varied across the region
A breakdown of the average food prices showed that the price increase varied across Nigeria’s six geo-political zones.
The report disclosed that the increase in the average food price was highest in the South-East region, as it increased from N3,366.41 in November to N3,484.48 in December 2024.
The South-South region recorded the highest increase in the average food price in December at N3,159.44 from N3,121.16 in November 2024. It is followed closely by the South-West region, where the average food price increased to N3,009.91 in December from N2,997.31 in November 2024.
The average food price increased to N2,799.19 in the North-East region in December from N2,638.28 in November 2024. The price increased to N2,732.00 in the North-Central region in December from N2,706.24 in November 2024.
The North-West region recorded the lowest average food price at N2,526.72 in December, slightly increasing from N2,511.86 in November 2024.
Implication and drivers of food price increase
The increase in food prices in November 2024 is attributed to a combination of factors, which have increased inflationary pressures and affected households.
These factors include insecurity in most food-producing regions of the country, which continue to disrupt farming activities and food supply chains, and severe weather conditions such as flooding, heat waves, etc., caused by climate change.
Other factors are the increasing cost of transportation as a result of the fuel subsidy removal and the depreciation of the naira, which has increased the cost of importation of essential items.
The increase in food prices portends economic implications such as exacerbated food insecurity and availability.
It poses concerns as PricewaterhouseCoopers International Limited (PwC) recently projected that about 33.1 million Nigerians may fall into food insecurity by 2025, driven by rising inflation, persistent economic hardship, and violence in food-producing regions.
The PwC report also stated that the number of people living below the national poverty line is projected to increase by about 13 million by 2025.
Inflation: Nigerians to spend 54.9% income on food in next 6 months, projects CBN
Meanwhile, TheRadar earlier reported that a survey by the Central Bank of Nigeria (CBN) revealed that the escalating inflation rate in Nigeria is expected to lead households to dedicate the largest portion of their earnings to food expenses over the next six months.
The survey, conducted from July 22 to 26, 2024, revealed that the inflation rate has surged to 33.40 per cent, with food inflation exceeding 40 per cent.
