The economic challenges faced by Nigerians continue unabated as the National Bureau of Statistics (NBS) reports a significant increase in food prices, with the country’s food inflation reaching 35.41 percent in January. This marks an 11.10 percent increase compared to the same period in 2023.
The surge in prices is attributed to higher costs across various food categories such as bread, cereals, potatoes, yams, oils, fats, fish, meat, fruits, coffee, tea, and cocoa. Despite January traditionally being associated with reduced spending following increased spending in December, the month-on-month increase stood at 3.21 percent, up from 2.72 percent in December 2023.
In addition to the soaring food prices, Nigeria’s headline inflation rate rose to 29.90 percent in January, reflecting a 0.98 percent increase from December 2023. This rise follows December 2023’s inflation figure, which marked a 20-year record high.
The Core inflation rate, which excludes volatile agricultural produce and energy prices, surged to 23.59 percent year-on-year, up by 4.71 percent from January 2023. The highest increases were observed in prices of road transportation, medical services, housing rentals, pharmaceutical products, accommodation services, and air transportation.
State-wise, Kogi, Oyo, and Akwa Ibom recorded the highest year-on-year inflation rates, while Borno, Taraba, and Benue experienced slower increases. On a month-on-month basis, Ondo, Osun, and Jigawa witnessed the highest inflation rates, whereas Bayelsa, Yobe, and Ogun recorded the slowest rises.
Regarding food inflation, Kogi, Kwara, and Rivers saw the highest year-on-year increases, while Bauchi, Adamawa, and Kano experienced slower rises. On a month-on-month basis, Ondo, Osun, and Edo reported the highest increases, while Bayelsa, Yobe, and Ogun recorded the slowest rises.
Insecurity remains a significant factor contributing to high food prices, as farmers struggle to access their lands safely for cultivation. Paul Alaje, a senior economist at SPM Professionals, emphasized the need for government intervention to ensure farm safety and increase agricultural production. He suggested implementing policies to encourage farming activities, such as establishing farm hubs in local governments, to address the supply shortage and avert potential food crises.
