Nigeria’s food inflation has been on an upward trajectory since August 2019, accelerating further after the country removed petrol subsidies and floated the naira. In September 2023, food inflation reached 30.64 percent, driving the overall inflation rate to an 18-year high of 26.72 percent. This surge in food prices is exacerbating food insecurity, with an estimated 148 million Nigerians (74 percent of the population) experiencing food insecurity. Factors such as rising input costs, climate change, insecurity, and flooding have all contributed to the challenges faced by the agricultural sector.
Key Points:
- Food inflation in Nigeria has more than doubled in five years, reaching 30.64 percent in September 2023, contributing to the country’s overall inflation crisis.
- Approximately 148 million Nigerians are experiencing food insecurity, representing 74 percent of the population, according to the 2023 State of Global Food and Nutrition Security.
- Nigeria is listed among countries expected to face catastrophic levels of food insecurity in 2023, with 24.8 million people projected to be acutely food insecure between June and August 2023.
- Various shocks, including rising input costs, climate change, insecurity, and flooding, have significantly impacted Nigeria’s agriculture sector, leading to food inflation.
- Nigeria continues to grapple with a demand-supply gap in staple foods, with the population growing faster than food production.
- The surge in food prices is putting strain on the economy and exacerbating poverty levels, as many Nigerians face difficulties in affording basic food items.
Analysis: Nigeria’s escalating food inflation crisis is a multi-faceted challenge with far-reaching implications. Rising food prices are not only eroding purchasing power but are also driving up the overall cost of living for citizens. This situation is particularly dire for vulnerable populations, exacerbating issues of malnutrition and hunger. The removal of petrol subsidies, coupled with a weaker naira, has further intensified the struggles faced by farmers, contributing to the ongoing inflationary pressures. Addressing this crisis requires a comprehensive approach, encompassing efforts to bolster agricultural productivity, enhance food security measures, and implement targeted policies to mitigate the impact on households. Additionally, initiatives to stabilize the economy and curb inflation are essential to provide relief to Nigerians grappling with the high cost of living.
