SBM: Nigerians showing resilience to rising food prices
Some Nigerians are returning to farming, while others are creating food-sharing groups to supplement their income, as well as bypass middlemen. Some others have resulted to experimenting with alternative ingredients as food prices continue to soar. SBM in its Jollof Index report says the average cost of cooking a pot of jollof rice, rose by 19.6 per cent between March to June this year. Seyi Awojulugbe, a Senior Analyst at SBM Intelligence, joins CNBC Africa for this discussion.
Thu, 01 Aug 2024 12:13:39 GMT
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AI Generated Summary
- Nigerians are resorting to farming and food-sharing groups to mitigate the impact of rising food prices.
- The Jollof Index report reveals a significant increase in the cost of cooking a pot of jollof rice, reflecting the food inflation trend.
- Innovative solutions such as ingredient substitutions and government policies like productivity waivers are being explored to address the crisis.
As food prices continue to soar in Nigeria, leading to a 19.6% increase in the cost of cooking a pot of jollof rice, many Nigerians are showing resilience by embracing various innovative measures to cope with the challenges. Some are turning to farming, while others are setting up food-sharing groups to supplement their income and avoid middlemen. Another group of individuals are experimenting with alternative ingredients to counter the rising costs. The Jollof Index report by SBM Intelligence has shed light on the significant rise in the average cost of preparing a pot of jollof rice, a popular Nigerian dish, which now stands at 20,274 Naira for a family of five. The ingredients include rice, turkey, vegetables, oil, beef, pepper, and tinned tomatoes, amounting to approximately 30% of the new minimum wage. This index aligns with the trajectory of food inflation observed across the country. Seyi Awojulugbe, a Senior Analyst at SBM Intelligence, highlighted the correlation between food price increases and the current protests in Nigeria against bad governance. The surge in food prices can be attributed to various factors such as levies imposed by non-state actors and bandits on farmers, bottlenecks in the agricultural value chain, and other challenges that have disrupted food supply and production. With households facing a dual challenge of escalating food costs and diminishing purchasing power, many are seeking alternative solutions. Some individuals are substituting traditional ingredients with alternatives like cucumbers and watermelons. In response to the crisis, the Nigerian government has implemented a productivity waiver for essential food items to alleviate the inflationary pressures. Additionally, recommendations include providing support to farmers by addressing issues such as costly fertilizers and imported seeds affected by currency devaluation. Security concerns also need attention to ensure a stable food supply chain. Reflecting on successful strategies adopted by other African nations like Ghana, which implemented initiatives like the 'Planting for Food and Jobs' project, Nigeria can benefit from proactive government interventions to curb food inflation rates. Looking ahead, Seyi Awojulugbe forecasts that while the import duty waiver may temporarily curb food inflation, sustained efforts and comprehensive policies are crucial to achieving long-term stability in food prices. With innovative approaches and strategic government support, Nigerians aim to navigate the challenges posed by rising food costs and secure sustainable food security for the future.
