Within a period of four months (June-September), the average cost of preparing a pot of jollof rice, a popular Nigerian delicacy for a family of five, rose by 5.1 percent to N21,300, according to the latest Jollof Index report.

The report, entitled, ?Crises On The Menu? prepared by SBM Intelligence, an Africa-focused geopolitical research and strategic communications consulting firm, shows that the cost of preparing a pot of the popular Nigerian delicacy increased to N21,300 in September from N20,274 in June, driven by a rise in tomatoes and pepper prices.

This means that a family of five a pot of jollof could take 30.4 percent of the new N70,000 minimum wage.

?The surge in Jollof rice was primarily driven by substantial price hikes in key ingredients, particularly tomatoes and peppers. Other essential components such as rice, turkey, beef and vegetable oil maintained their already high prices, further contributing to the overall cost increase,? the report said.

The report noted that the prices of ingredients like tomatoes and peppers had surged by over 300 percent in June but slightly relieved in July.

However, in August and September, other staple food items saw continued increases. For instance, the price of a 50kg bag of long-grain rice rose from around N85,000 in July and early August to about N100,000 by September.

BusinessDay reported on Tuesday that a 50kg bag of local parboiled rice stood at an average of N105,000, higher than the country?s new minimum wage of N70,000.

?The continuous surge in the price of local parboiled rice is an indication that smallholder farmers currently cannot meet local demand for the grain due to insecurity, high cost of inputs and logistics issues,? the report disclosed.

The SBM report said the price hike occurred despite the government?s plan to distribute over 600,000 bags of rice at a subsidised rate of N40,000 per 50kg, highlighting the gap between policy intentions and actual market realities.

Using the Jollof index, SBM illustrates how food prices have changed over time. The data gathered monthly from 13 markets spread across Nigeria?s six geopolitical zones disclosed that while June recorded an all-time high for jollof rice prices, September saw some relief in certain markets, although inflationary pressures persisted in others.

Nyanya Market in Abuja had the sharpest increase, with prices surging by 29.5 percent, from N21,850 in June to N28,300 in September.

Onitsha Market recorded the most substantial decrease, with prices dropping by 13.2 percent, from N22,350 in June to N19,400 in September. According to the National Bureau of Statistics, Nigeria?s food inflation rate accelerated to 37.7 percent in September after a two-month decline, adding pressure to households.

The Consumer Price Report of the National Bureau of Statistics (NBS) shows that food inflation surged 23 percent on a year-on-year basis from the 30.6 percent it recorded in the corresponding period of 2023.

Usman Abdullahi, an Abuja-based commodities trader, said that the collapse of the Alan Dam in Borno flooded thousands of farms, washing off harvest gains.

?This is why food prices have not come down drastically as expected. A lot of food may not be recovered because of the floods. Many farmlands in Bauchi, Gombe, Jigawa and Niger were seriously affected, reducing the availability of crops and food that would have been sold in the market,? he said.

Also, Africanfarmer Mogaji, an agribusiness strategist, said smuggling and importation are driving up food prices in the SouthWest and undermining the region?s food security.

?We don?t pay attention to this issue because we don?t have reliable data, and people don?t pay attention to numbers or policies. A significant amount of goods are smuggled by road, impacting the region. Smuggling and importation have raised food prices.?

Analysts at SBM disclosed that despite the government efforts to mitigate food shortages and rising prices, and actions by the Federal Competition and Consumer Protection Commission (FCCPC) against suspected price-manipulating cartels and supermarkets.

\?The outcomes remain limited as inflation and devaluation pressures persist,? the report disclosed. (BusinessDay)

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