What can the rise in the price of food items and essential commodities tell us? What happens when a global pandemic ravages through a third world country already at the brink of an economic recession? A DATAPHYTE report in June 2020 answers some of these questions.
It revealed that between January and March 2020, food prices changed by as much as 19.19 per cent for yam. Prices for garri, tomato, and maize increased by 19.16 per cent, 16.77 per cent, and 11.40 per cent respectively, within the reviewed period. Of the fourteen four commodities reviewed, only white black eye beans reduced in price by minus 6.87 per cent.
Furthermore, the recently released food price watch (June 2020) from the National Bureau of Statistics also revealed changes in food prices in Nigeria. Except for medium-sized agric eggs and unsliced bread whose prices reduced by minus 0.8 per cent and minus 1.4 per cent, each of the other food items has recorded further increases in price. The price for garri, yam tuber, maize, and tomatoes increased further by 12.88 per cent, 8.96 per cent, 7.49 per cent, and 6.30 per cent, respectively. Other food items also recorded higher prices between April and June.
By implication, some of the most commonly consumed food products in Nigeria have recorded higher prices. For example, garri, yam, maize, tomatoes, rice, and beans are commonly consumed by Nigerians across socio-economic divides. Also, mackerel fish, a common source of protein for poorer households in Nigeria recorded fiscal increment. Thus, higher prices for these food items may deny poorer households basic nutritional needs and contribute to the existing food insecurity in the country.
Food Price Changes (National Average)
| Food Item | per centage Price Change (Jan-April) | per centage Price Change (April- June) |
| Agric eggs medium size | 4.96 | -0.82 |
| Beans: white black eye. sold loose | -6.87 | 3.62 |
| Beef, boneless | 1.39 | 0.72 |
| Bread unsliced 500g | 4.41 | -1.36 |
| Evaporated tinned milk carnation 170g | 2.46 | 1.17 |
| Garri white, sold loose | 19.16 | 12.88 |
| Groundnut oil: 1 bottle, specify bottle | 5.10 | 3.21 |
| Mackerel: frozen | 0.75 | 2.50 |
| Maize grain white sold loose | 11.40 | 7.49 |
| Plantain(unripe) | 16.82 | 3.64 |
| Rice local sold loose | 1.16 | 1.47 |
| Tomato | 16.77 | 6.30 |
| Vegetable oil:1 bottle, specify bottle | 7.07 | 3.00 |
| Yam tuber | 19.19 | 8.96 |
Beyond increasing food prices, reports from the National Bureau of Statistics have indicated a general increase in the price of goods and services. For instance, the average national price of 5 kilograms of cooking gas increased from ₦1,957 in April to ₦1,965 in May and ₦1,974 in June. Similarly, there has been an increase in transport fare across the country.
Food prices a microcosm of a dismal reality
As Nigerians battle the reality of higher commodity prices, there is also a general depreciation in monetary value in the country. Early in July, a DATAPHYTE report explained the direct implications of the naira fluctuation and the currency devaluation. According to the report, between January and July, each earner of the minimum wage (₦30,000) lost a minimum of $20 on each salary earned at CBN’s official exchange rate. Even at black market rates which currently stand around ₦473/$1, there is a loss of $20 on every ₦30,000 between January and now.
The non-mathematical reality is that many Nigerians have become poor, or poorer in the last couple of months. More so, analyses show that some Nigerians may have fallen below the poverty margin this year. Also, the series of job loss and business distortions orchestrated by the pandemic has distorted individual and household income.
6 Charts Showing Drop in Food Consumption During COVID-19 Lockdown via @Dataphyte https://t.co/ffu7g2I9cu
— Dataphyte (@Dataphyte) July 13, 2020
It is, hence, imperative that the Nigerian government develops measures to help the most vulnerable Nigerians cope with the effects of these new realities. Perhaps, food subsidies can be provided for the poorest Nigerians. Also, palliatives and cash handouts can be provided with the utmost priority on accountability in disbursement. Further, outrightly publishing the beneficiaries of palliative funds could provide true accountability.
In addition, the Nigerian government should improve its distribution of palliative to poor and vulnerable households by adopting a clear strategy. Chaotic and uncoordinated distribution of palliative as was reported in some parts of the country should be avoided. Ultimately, these realities reflect the need for holistic economic repositioning. Such a strategy will improve the general economic outlook and aid improvement in employment and income.