High food prices erode Nigerians’ income.
Nigerians’ wallets are feeling the strain as food prices soared to 40.66% in May, with key staples like garri, potatoes, fish, and meat driving up costs. The National Bureau of Statistics (NBS) also reported headline inflation reaching 33.95%, a 28-year high.
Core inflation, excluding agricultural produce and energy, rose to 27%. Economists predict inflation could peak at 35% before year-end.
The Central Bank of Nigeria (CBN) has raised interest rates to 26.25% in an effort to control inflation. However, high food prices continue to erode purchasing power, forcing many Nigerians to cut back on spending and even skip meals.
The World Bank highlighted that recent economic reforms, including the liberalization of the forex market and the removal of subsidies, have exacerbated inflation. The government has responded with a cash transfer program to support the most vulnerable.
Experts agree that resolving the insecurity deterring farmers is crucial for stabilizing food prices. President Tinubu’s administration has prioritized tackling food insecurity, with measures to boost agricultural output and ensure food affordability.
As the Central Bank continues its efforts to curb inflation, the hope is that food prices will eventually stabilize, improving the economic outlook for Nigerians.
