Rising food prices could continue due to insufficient local production and other factors
By Jeph Ajobaju, Editor-in-Chief
Raging insecurity has collaborated with rising prices for scarce diesel and gasoline to push food prices to an all-time high in the first quarter of 2022 (Q1 2022).
“It is no longer news that food prices in Nigeria have reached record highs over the past five years and Nigeria is facing a food security crisis.
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“In our previous Jollof Index, we highlighted the causes, impacts and policy solutions to rising food prices in the country and the threat to food security,” SB Morgan said in a new report. .
SB Morgan – a geopolitical intelligence platform – disclosed in the report, titled “The SBM Jollof Index Q4 2021 & Q1 2022; Geopolitics comes for dinner,” he uses jollof rice to calculate food inflation.
The cost of cooking jollof rice for a family of five – the average family size, according to the National Bureau of Statistics (NBS) – is calculated using the prices of its ingredients, the report explains.
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According to the report of The punchsaid SB Morgan
- It uses the ingredient cost of jollof rice as a gauge to measure food inflation across the country.
- Ingredients include rice, curry, thyme, seasonings, peanut oil, turkey/chicken (poultry), beef, pepper, tomatoes, salt and onions.
- The average cost of cooking a pot of jollof rice for a family of five increased by 7.3%, from N8,007.50 in Q3 2021 to N8,595 in Q1 2022.
- Faced with limited food production due to insecurity, storage problems and a growing population, the importation of food would increase, and at higher costs, due to restrictions on foreign exchange (forex) and high black market rates.
- Food price spikes are now commonplace, as even markets on the periphery are also seeing rising prices.
“The national average shows that prices rose in October and November, fell slightly in January and started an upward trend in February and March.
“The peak in October and November is attributed to the growing demand for food products in anticipation of the holiday season in December.
“Rice and peanut oil explain this increase because companies have purchased end-of-year social packages for their employees.
“Diesel prices began to climb in October due to supply shortages, and this was compounded by continuing concerns about insecurity which is driving more and more farmers away from their farms.
“In February and March, issues that caused food prices to rise include a continued rise in diesel prices, gasoline shortages and heightened insecurity.
“Gasoline prices generally have a ripple effect on the cost of transporting and storing food.”