Afrigather The common price of getting ready a pot of jollof rice for a Nigerian household of 5 has risen by 9.73 % over the previous seven months, based on a brand new Jollof Index report.
The report, titled ‘Remaining inside a vicious cycle’ by SBM Intelligence, an Africa-focused geopolitical analysis and strategic communications consulting agency, present that the price of getting ready a pot of the favored Nigerian delicacy rose to N10,882 in March 2023 from N9,917 in September final 12 months.
Based on the report, the upward pattern exhibits that the costs of important elements for jollof rice have elevated, putting elevated monetary stress on households and doubtlessly decreasing their high quality of life.
“The interval between September and November noticed lengthy petrol queues throughout the nation, which led to provide chain disruptions and insufficient provides of meals elements,” it stated.
It stated because the gasoline shortage didn’t ease, the costs of things like rice and hen elevated in November as preparations for the end-of-year festivities started, which are sometimes accompanied by elevated purchases of meals objects by firms and households.
“February noticed a slight decline of 0.41 % in the price of making a pot of jollof rice, which doubtlessly indicated a short lived stabilisation or a short-term enchancment in market circumstances.
“Nevertheless, our interviews with merchants and consumers present that there was latent demand following the money scarcity created by the quick change window given by the federal government to swap outdated notes,” it added.
Utilizing the Jollof Index, SBM illustrates how meals costs have modified over time. The information gathered month-to-month from 13 markets unfold throughout Nigeria’s six geopolitical zones is computed utilizing the prices of the elements. It doesn’t embrace December due to seasonal differences that trigger worth hikes.
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The elements that make up the index are rice, groundnut oil, hen or turkey, beef, seasoning, pepper, tomatoes, salt and onions. Whereas the index has treaded near meals inflation since assortment started in 2016, it has offered a easy means of speaking the realities of inflation to the Nigerian public.
The SBM report highlighted that throughout the 13 markets, Wuse II in Abuja is the most costly place to make jollof rice at N13, 150, whereas it’s the least expensive in Lagos (Commerce Truthful) at N8, 850.
“These variations in the price of making a pot of jollof rice present the range of challenges confronted by completely different communities and the significance of monitoring meals costs throughout numerous areas to make sure that everybody has entry to reasonably priced and nutritious meals,” it stated.
Information from the Nationwide Bureau of Statistics present that Nigeria’s meals inflation price accelerated for the third straight month in March to 24.46 %, highest in 17 years, from 24.35 % within the earlier month, based on the Nationwide Bureau of Statistics.
Analysts at SBM stated Africa’s greatest economic system is going through a persistent meals insecurity disaster that’s frequently aggravated by insecurity, poor insurance policies, adversarial climate circumstances, and worldwide occasions such because the current Russia-Ukraine battle.
“This alarming scenario stems from numerous components, together with unstable food-producing areas, insufficient storage infrastructure, and an absence of agricultural commercialization.”
Final 12 months, the World Financial institution stated the nation’s accelerated inflation price had eroded the N30, 000 minimal wages by 35.5 % and widened the poverty web with an estimated 5 million individuals.
It stated the upper inflation in 2022 is estimated to have pushed a further 5 million Nigerians into poverty between January and September 2022, primarily via larger costs of native staples – rice, bread, yam, and wheat, particularly in non-rural areas.
