Why food prices are surging in Nigeria
A third-quarter Jollof Index report by SBM Intelligence shows that the average cost of making a pot of jollof rice, a local delicacy in Nigeria, rose to 8000 naira in the third quarter of 2021, from the 7618 naira in the second quarter of this year. Ikemesit Effiong, Head of Research at SBM Intelligence, joins CNBC Africa for more.
Mon, 25 Oct 2021 11:47:55 GMT
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AI Generated Summary
- Insecurity in key food-producing regions is disrupting the agricultural supply chain, leading to price spikes and scarcity of essential commodities.
- Currency devaluation and rising transportation costs are contributing to the upward trend in food prices, with the removal of fuel subsidies further complicating the situation.
- Stabilizing food prices and ensuring food security in Nigeria require addressing the underlying issues in the agricultural value chain and tackling the security challenges.
Food prices in Nigeria have been on the rise, with the cost of making a pot of Jollof rice, a local delicacy, increasing to 8,000 Naira in the third quarter of 2021, up from 7,618 Naira in the previous quarter. This surge in prices has been a cause for concern, and Ikemesit Effiong, the Head of Research at SBM Intelligence, sheds light on the reasons behind this trend. Effiong highlighted the impact of insecurity, currency devaluation, and transportation costs on food prices across the country. He noted that the sharp regional discrepancies in prices are largely attributed to the deteriorating security situation, which has disrupted the agricultural supply chain. Effiong also emphasized that the removal of fuel subsidies could further exacerbate the situation, leading to higher food prices. The ongoing insecurity in key food-producing regions has not only caused price spikes but also scarcity of certain commodities, making them more expensive when available. The disruptions in the agricultural value chain, particularly in terms of storage and transportation, have added to the challenges faced in bringing food items to market. Addressing these issues is crucial to stabilizing food prices in Nigeria and ensuring food security for its citizens.
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