Tough times lie ahead for Nigerians as prices of staple foods such as rice, maize, millet, and cereals are projected to rise in Nigeria and other West African countries in 2024.
This was made known in a report titled “West Africa Regional Supply and Market Outlook,” published jointly by the Food and Agricultural Organisation, FAO, World Food Programme, WFP, and others.
The report indicated that prices of staple crops would increase above the five-year average price occasioned by a reduction in production, trade restrictions, global geopolitical factors, and others.
The report states: “Staple prices currently remain above the five-year average across the region. This is attributable to a combination of factors, including production deficits, trade restrictions, insecurity in the Sahel, elevated global prices, high transaction costs, and currency depreciation in the coastal countries of the Gulf of Guinea.”
Addressing Nigeria specifically, the report further states: “Moreover, Nigeria’s annual inflation continues to climb, exacerbated by the removal of fuel subsidies. Prices are projected to stay above average owing to limited production performance, sustained demand, constrained humanitarian assistance, continuing trade disruptions, and security and socioeconomic challenges in the region.”
According to the National Bureau of Statistics, the November Consumer Price Index showed that food inflation in Nigeria rose to 32.84 per cent while annual headline inflation stood at 28.20 per cent.
Similarly, AFEX’s report predicted rice would increase by 32 per cent in 2024.
Fuel subsidy removal and exchange rate reform in June doubled the prices of foods, goods, and services across the board in Nigeria.
