The recent report on Nigeria’s inflation rate showed it climbed to a 65-month high on skyrocketing food prices. Now, check that again: Inflation jumped to the highest level the nation has seen in about 65 months—an equivalent of more than five years.
According to data released by the National Bureau of Statistics, the nation’s inflation rate in the month of June 2022 surged to 18.6% compared to 17.71% recorded in May, representing the fifth consecutive monthly rise. Of course, the last time the inflation rate in Nigeria touched that ceiling was January 2017, when it surged to 18.72%.
Consequently, against the background of surging rates, the NBS also disclosed that food inflation, a very important index in the mix, rose to 20.6% in June 2022 from 19.5% recorded in May 2022. The rise in the index was caused by increased prices of bread and cereals, food products, potatoes, yams, and other tubers, meat, fish, oil and fat, and wine.
Amid global economic uncertainties experienced in the wake of another global health crisis, Nigerians are being hit in different directions by socio-economic challenges of varying degrees. How well the masses survive depends largely on policy decisions made by those in leadership positions in the coming months. Nigeria is among the countries with the highest inflation rates globally, thanks to its fast-growing CPI.
Before this period, food inflation reached 17.2% and 18.37% in March and April, respectively.
Many governments’ (self-)appointed spokespersons have linked the rising food prices to the global uncertainty surrounding the COVID-19 pandemic. But some issues affecting food inflation in Nigeria are tied to the government’s (in)decisions.
Fuel Crisis
Since the first half of the year, the Nigerian people have not enjoyed a stable fuel supply across states.
Although the crisis got to its crescendo when the government announced the importation of off-spec fuel into the country earlier in the year, the crisis started last year when the government announced plans to remove fuel subsidies and later shelved the idea. Since then, fuel supply around the country has been “epileptic,” with a ripple effect on commodity prices, transport costs, and the prices of household goods. This month, the crisis has worsened, compelling many Nigerians to cough out the money in the range of N250 and above for a litre of petrol amid scarcity and festivities.
According to Statista, food prices in April 2022 increased considerably compared to April 2021. Within the period, tomato, groundnut oil, and palm oil prices increased the most, with the price of a kilogram of tomato growing by over 53 percent compared to the previous year. In comparison, the price of vegetable oil rose by 46 percent.
Shockingly, among all selected food products, none recorded a price decrease!
Power Conundrum
Despite warnings that Nigeria may be plunged into a food crisis if the prices of essential food commodities continue to rise unabated, the situation has failed to abate. Rather, a ghastly combination of fuel crises and poor electricity has pushed many Nigerians into hardship and excruciating misery.