Latest data from the Nigeria’s National Bureau of Statistics (NBS) on Monday showed that the country’s Consumer Price Index moved further north, with inflation rising 24 basis points above its level in May to 34.19% from 33.95%.
Food inflation also continued unabated to 40.87% within the period from 40.66% in the corresponding period year-on-year in May, in what the bureau blamed on increases in prices of staples such as millet whole grain, garri, and guinea corn, (bread and cereals class), yam, water yam, cocoyam (potatoes, yam and other tubers class), groundnut oil, palm oil, among others in the oil and fats class. Others include dried catfish, dried fish-sadine, and mudfish (fish class).
On a month-on-month basis, Food inflation increased by 2.55%, relative to the 2.28% m/m recorded in the previous month.
Also, Core inflation jumped by 36bps to 27.40% year-on-year from 27.04% in May, with the highest growth recorded in the prices of rents (actual and imputed rentals for housing class), passenger transport by road, accommodation service, medical consultation and services, and pharmaceutical products.
Compared to the previous month, the Core index surged by 5bps to 2.06% month-on-month in June, from 2.01% in the prior month.
On a state-by-state basis, the NBS report showed that all-item inflation was at its peak Bauchi where it rose by 43.95%; ahead of Kogi, 39.91%; and Oyo, 39.15%.
The general rise in prices was slowest year-on-year in Borno, 25.90%; Benue, 27.52%; and Katsina, 29.21; while the on a month-on-month basis, the highest increase was seen in Yobe, 3.79%; Abuja, 3.45%; and Ondo, 3.38%.
In the area of food, inflation on a YoY basis was highest in Edo, 47.34%; Kogi,
46.37%; and Cross River, 45.28%; while Nasarawa had the slowest rise at 34.31%; Bauchi, 34.78%; followed by Adamawa, 35.96% YoY.
On a Monthon-Month basis, however, Food inflation in June 2024 was also highest in the three northeast states of Yobe at 4.75%; Adamawa, 4.74%; and Taraba, 4.12%; while Nasarawa’s 0.14% was the lowest within the month followed by Kano, 0.96%; and Lagos, Nigeria’s commercial and economic capital recorded 1.25% on month-on-month basis.
Recall that the country’s President Bola Tinubu recently unveiled measures to overcome high food prices, a breakdown of which the Minister of Agriculture and Food Security, Senator Abubakar Kyari, said will be implemented over a 180-days including a 150-Day window during which duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders) will be suspended. The commodities include maize, husked brown rice, wheat and cowpeas.
Meanwhile, The President of the African Development Bank Group, Dr. Akinwumi Adesina, at the weekend said the decision by Nigeria’s government to allow massive food importation could destroy the country’s agriculture.
Adesina, was reacting to an announcement by Nigeria’s Minister for Agriculture Abubakar Kyari on July 10 that the Federal Government would suspend duties, tariffs, and taxes on the importation of maize, husked brown rice, wheat, and cowpeas through the country’s land and sea borders, for 150 days.
Addressing African Primates of the Anglican Church at a Retreat in Abuja, Nigeria, he described the policy to open its borders for massive food imports, just to tackle short-term food price hikes, as “depressing,” as it could undermine all the hard work and private investments that have gone into Nigeria’s agriculture sector.
In his words, “Nigeria cannot rely on the importation of food to stabilize prices. Nigeria should be producing more food to stabilize food prices, while creating jobs and reducing foreign exchange spending, that will further help stabilize the Naira.
Speaking on the theme ‘Food security and financial sustainability in Africa: The role of the Church’, Adesina said “Nigeria cannot import its way out of food insecurity,” and “must not be turned into a food import-dependent nation.”
The nation, he continued, “must feed itself with pride… A nation that depends on others to feed itself, is independent only in name.”
