Business
Surge In Food Prices Worsens Economic Misery In Nigeria
Surge In Food Prices Worsens Economic Misery In Nigeria
Nigeria is grappling with a significant rise in the prices of staple foods such as rice, garri, beans, and yam, with increases exceeding 130% year-on-year, exacerbating the country’s economic woes. This alarming trend was highlighted in the National Bureau of Statistics’ (NBS) recent food prices report for April 2024…….CONTINUE READING....KINDLY READ THE FULL STORY HERE▶
Key Findings:
- Rice Prices: The price of a one-kilogram bag of rice surged by 155.93% to N1,399.34 in April 2024 from N546.76 in April 2023. On a month-on-month basis, the price increased by 3.47% from N1,340.74 in March 2024.
- Garri Prices: The average price of 1kg of garri rose by 134.98% year-on-year to N851.81 in April 2024 from N362.50 in April 2023. There was also a significant monthly increase of 13.59% from N749.89 in March 2024.
- Tomato Prices: The price of 1kg of tomatoes jumped by 131.58% annually to N1,123.41 in April 2024 from N485.10 in April 2023. On a month-to-month basis, the increase was 17.06% from N959.68 in March 2024.
- Beans Prices: The average price of 1kg of brown beans increased by 125.43% year-on-year to N1,387.90 in April 2024 from N615.67 in April 2023, with a monthly rise of 12.44%.
- Yam Prices: The price of 1kg of yam tuber went up by 154.19% year-on-year to N1,130.37 in April 2024 from N444.69 in April 2023. There was a 5.76% month-on-month increase from N1,068.78 in March 2024.
Economic Context:
The surge in food prices coincides with a rise in Nigeria’s headline and food inflation rates, which stood at 33.69% and 40.53% respectively in April 2024. Financial experts have attributed these increases to the Federal Government’s policies under President Bola Ahmed Tinubu, particularly the removal of fuel subsidies and the devaluation of the naira.
Policy Responses:
- Interest Rate Hike: The Central Bank of Nigeria (CBN) raised the interest rate to 26.25% during its latest Monetary Policy Committee (MPC) meeting, aiming to curb inflation. CBN Governor Olayemi Cardoso stated that the decision was intended to tame inflationary pressures.
- Effectiveness of Rate Hikes: Despite these measures, Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, argued that previous interest rate hikes have not effectively impacted Nigeria’s inflation rate, suggesting that alternative strategies might be necessary.
Implications:
The sharp increase in food prices is aggravating the economic hardship faced by Nigerians, particularly affecting low-income households who spend a large proportion of their income on food. The government’s efforts to stabilize the economy through monetary policies and structural adjustments will be critical in addressing these challenges and ensuring food security for the population.
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Cooking Gas Prices Drop Significantly Across Nigeria: Relief for Households and Businesses
A recent survey conducted by Naija News has revealed a notable decrease in the price of cooking gas in Nigeria, offering much-needed relief to households and small businesses. According to the survey, the cost of refilling cooking gas per kilogram has reduced significantly from ₦1,350 to ₦1,020.....KINDLY READ THE FULL STORY HERE▶
This positive development is expected to ease the financial burden on Nigerian families and small enterprises, especially those that heavily depend on cooking gas as a primary energy source. The survey, encompassing gas stations and vendors from various parts of the country, shows that the reduced price may help lower the overall cost of living.
The revised price breakdown is as follows:
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1 kg of Cooking Gas: ₦1,020
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3 kg of Cooking Gas: ₦3,060
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5 kg of Cooking Gas: ₦5,100
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10 kg of Cooking Gas: ₦10,200
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12.5 kg of Cooking Gas: ₦12,750
This decline marks a significant shift from the previous upward trend in gas prices and is likely to positively impact the economy, particularly the food and hospitality sectors. Businesses that rely on cooking gas will experience reduced operational costs, ultimately boosting their profit margins.
Experts attribute the drop in cooking gas prices to several factors, including fluctuations in global energy costs and adjustments within local supply chains. Despite recent variations in crude oil and natural gas prices, the reduction is perceived as a welcome development for Nigerian consumers.
By spending less on cooking gas, households and small businesses will now see some financial relief in their monthly budgets, especially during these economically challenging times.
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