In August 2024, Nigeria experienced a minor drop in the expense of healthy meals, providing some relief for families facing increasing food costs. The National Bureau of Statistics (NBS) reported that the typical price of a healthy meal decreased to ₦1,255 ($0.75) in August, representing a reduction of 0.8% from the ₦1,265 ($0.76) observed in July. According to the NBS, the Cost of a Healthy Diet (CoHD) refers to the most affordable selection of locally sourced foods that adhere to global dietary guidelines.
Despite this slight decrease, several Nigerians still struggle with elevated food prices, especially in relation to the nation’s Minimum Wage of ₦70,000 ($41.89). The increase in food costs has surpassed overall Inflation rates and food inflation itself, creating difficulties for households to consistently afford nutritious meals. In August, foods derived from animals represented the priciest category, constituting 37% of the overall cost of the CoHD, yet they delivered only 13% of total caloric intake, according to the report.
High food prices impact several of Nigeria’s families.
Additionally, fruits and vegetables presented monetary obstacles for buyers, accounting for 11% and 14% of the CoHD while supplying just 7% and 5% of total calories, respectively. Conversely, legumes, nuts, and seeds were identified as the cheapest food category, accounting for just 7% of the overall expense. Although the decline in prices from month to month in August offers short-term comfort, food costs have predominantly escalated since March 2024. Within this timeframe, the CoHD has seen a 28% hike, climbing from N982 to its present amount of ₦1,255.
This increase can be mainly attributed to the growing expenses associated with vegetables, starchy foods, nuts, seeds, and legumes. A key point in the report is the notable decrease in vegetable prices, which declined by 14.5% from July to August, contributing to a more affordable healthy diet. However, ongoing trends indicate that families in Nigeria continue to struggle with elevated food expenses. Furthermore, the typical costs of 11 essential food products throughout Nigeria demonstrated some easing in August.
Staple foods saw significant reductions in prices from the previous month.
Also, the NBS report highlighted that these staples saw significant reductions in prices from the previous month, even though year-over-year (YoY) price hikes persisted at a high level. In the review month, the price of sweet potatoes experienced a significant decline, decreasing by 12.38% to ₦850.31 from ₦970.50 in July. However, when compared to the previous year, sweet potatoes recorded a remarkable year-over-year increase of 136.19%. Likewise, tomatoes faced a month-over-month decrease of 11.07%, settling at ₦1,506.35 in August, while their yearly prices skyrocketed by 171.72%.
Yam tubers, essential for many families in Nigeria, experienced a monthly decrease of 7.82%, settling at ₦1,661.80 in August. Despite this drop, prices of yam have surged by about 188.31% year-on-year. Similarly, Irish potatoes saw a month-on-month price reduction of 7.31%, now priced at ₦1,650.74, yet they still reflect a year-on-year increase of 145.13%. Even with these monthly decreases, yearly price hikes still pose a challenge, with food inflation in Nigeria significantly impacting families.
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According to the NBS, the nation’s inflation rate was recorded at 32.15% in August, a minor decline from the previous month’s 33.40%. Nonetheless, the annual inflation rate climbed by 6.35 percentage points compared to August 2023, indicating persistent inflationary challenges. In August 2024, food inflation stood at 37.52%, an increase from 29.34% the previous year. Although the month-over-month food inflation decreased slightly from 2.47% in July to 2.37% in August, essential items such as bread, maize, and Palm Oil are still experiencing price hikes, posing additional difficulties for numerous Nigerians.