Financial Strain on Households Worsen as Food Inflation Soars 97% YoY

Arthur Eriye

The financial strain on households in Nigeria remains suffocating as numbers from the National Bureau of Statistics (NBS), showed the average cost of food in Nigeria increased by 97 per cent between November 2023 and November 2024.

The nearly twofold increase in food prices over the past year has significantly strained household budgets, particularly for low and middle-income earners. With wages failing to keep pace with inflation, food insecurity is becoming a growing concern across the country.

According to the NBS selected Food Price Watch report, the nationwide average price of food increased from N1,449.57 in November 2023 to N2,862.14 in November 2024. Month-on-month (MoM), prices also rose by 3.75 per cent, increasing from N2,758.60 in October 2024.

This steep rise highlights the mounting financial strain on households as economic pressures continue to grow, exacerbated by inflation, exchange rate fluctuations, and high logistics costs.

The NBS report provides a detailed breakdown of price increases for essential food items:

• Brown Beans (1kg, sold loose): Prices rose by a staggering 224.37 per cent year-on-year, from N838.85 in November 2023 to N2,720.96 in November 2024. However, on a month-to-month basis, prices dropped by 2.77 per cent from N2,798.50 in October 2024.
• Medium-Size Eggs (12 pieces): The average price increased by 135.74 per cent year-on-year, from N1,202.18 in November 2023 to N2,833.97 in November 2024. Month-on-month, prices rose by 6.08 per cent, up from N2,671.60 in October 2024.
• Onion Bulbs (1kg): Prices climbed by 174.65 per cent year-on-year, from N683.78 in November 2023 to ₦1,878.00 in November 2024.

The NBS sampled prices for 44 food items, including rice, bread, garri, dried fish, frozen chicken, and groundnut oil.

Food price increases were unevenly distributed across Nigeria, with the South-East recording the highest average prices at N3,366.41 in November 2024. This was significantly higher than the North-West, which reported the lowest average price of N2,511.86.

Regional averages for November 2024 were as follows: North-Central: N2,706.24, North-East: N2,638.28, North-West: N2,511.86, South-East: N3,366.41, South-South: N3,121.16, and South-West: N2,997.31

The alarming rise in food prices is attributed to several challenges, including insecurity in food-producing regions, as conflicts in key agricultural areas, particularly in the North, have disrupted farming activities and supply chains.

Climate change and flooding are also challenges, as adverse weather conditions have reduced crop yields, further limiting the supply of staple foods. There is also rising transportation costs as high fuel prices and poor road infrastructure have driven up the cost of moving goods across the country.

Nigeria’s reliance on imported food items has worsened the problem, with a weakened naira increasing the cost of imports.

The continuous surge in inflation underscores the urgent need for targeted policy interventions to stabilize food supply, improve distribution systems, and curb rising prices, particularly in critical sectors like agriculture and food production.
The doubling of food prices within a year has heightened food insecurity for many households, particularly as the increase far exceeds wage growth. Low- and middle-income earners are struggling to cope, with the cost of basic staples now out of reach for many.