Nigeria’s food inflation has climbed to a six-month high of 20.31 per cent, raising fresh concerns about the affordability of basic food items and the survival of farmers already battling soaring production costs. The latest figures show that while overall inflation is easing, the pressure on food prices continues to intensify, leaving both producers and consumers caught in a difficult squeeze.
According to the National Bureau of Statistics, food inflation has risen consistently from 12.12 per cent in February to 20.31 per cent in July, with the month-on-month rate also accelerating from 3.75 per cent in June to 5.56 per cent in July. Prices of items including rice, tomatoes, onions, pepper, eggs, beef, garri, plantain and other staples contributed to the increase. Farmers say higher energy and transportation costs, expensive fertiliser, insecurity, flooding and limited access to affordable financing are making it increasingly difficult to produce enough food at sustainable prices.
The situation is particularly troubling in the poultry industry, where farmers are facing the unusual reality of rising food inflation alongside weak demand for eggs. The Chairman of the Poultry Association of Nigeria, Lagos State Chapter, Mojeed Iyiola, said thousands of crates of eggs are reportedly being discarded every week because consumers cannot afford to buy them. With eggs being highly perishable, farmers are forced to reduce prices simply to clear their stock, leaving many producers operating at a loss despite continuing to spend heavily on feed and other inputs.
Agricultural stakeholders say the problem is being driven by a widening gap between production costs and consumers’ purchasing power. Tunde Banjoko, Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, pointed to rising energy and fuel costs as a major pressure on farmers, while insecurity, flooding and costly credit continue to weaken agricultural production. For farmers who borrowed money to expand their businesses, unsold or spoiled produce creates an even greater burden, as they still have loans to repay despite declining revenues.
The latest figures highlight a growing challenge for Nigeria: headline inflation may be slowing, but food inflation is moving in the opposite direction. Food inflation rose by 8.19 percentage points between February and July, compared with a much smaller 0.37 percentage-point movement in headline inflation over the same period. Farmers and industry stakeholders are therefore calling for urgent action on energy prices, fertiliser supply, transportation, security and agricultural financing. Without stronger intervention, they warn that Nigeria could face a deeper food affordability crisis in which consumers struggle to buy essentials while farmers continue to absorb heavy losses.
source: punch
