Surging Stew Costs Reflect Nigeria’s Deepening Economic Crisis

The cost of preparing stew in Nigeria has more than doubled, reflecting a broader cost-of-living crisis. The PricePally 2024 Stew Index Report reveals that a pot of beef stew now costs ₦17,817, while chicken and goat meat stews have also seen dramatic price increases. Supply chain issues and inflation largely contribute to these surges, straining low-income households, particularly in light of recent wage changes.

The cost of preparing Nigeria’s traditional stew has seen an alarming increase, doubling in price within a year in Lagos. The PricePally 2024 Stew Index Report indicates that a pot of beef stew costs ₦17,817 now, marking a vast increase of 121.05% from ₦8,060 in 2023, amidst rising food prices and inflation affecting households across the nation.

Significant cost spikes have also impacted other stew varieties; chicken stew now costs ₦15,034, up from ₦7,085 the previous year, while goat meat stew has risen by 153.03% from ₦8,227 to ₦20,811. Even a stew without protein has increased from ₦4,387 to ₦11,317 within the same timeframe, illustrating the widespread escalation in food costs.

This surge arises largely from supply chain disruptions and devaluation of the naira. Although food inflation dropped to 24.08% in January 2025 from nearly 40% in December 2024, according to the National Bureau of Statistics, the hike in prices remains a substantial strain, particularly on low-income earners.

With the new minimum wage set at ₦70,000 per month, a minimum wage worker must allocate 25.45% of their earnings just for one pot of beef stew, a steep increase from 24.42% when the minimum wage stood at ₦33,000.

Specifically, the cost of tomatoes surged from ₦1,506 per kilogram in July 2023 to ₦2,625 by September 2024—a 21.7% increase. Onions experienced a staggering rise from ₦971.86 per kilogram to ₦3,000, marking a 200% hike in just nine months. The volatility in prices can be attributed in part to seasonal availability and severe post-harvest losses due to inadequate infrastructure.

Basil Abia, co-founder of Veriv Africa, commented, “For tomatoes, one definite factor is their seasonality… On average, tomatoes can have a 40% to 50% loss ratio, and in some parts of Nigeria, that loss can be as high as 80%.” In addition, beef prices rose from ₦4,050 per kilogram to ₦6,500, while goat meat surged from ₦3,856 to ₦8,500.

The absence of cold storage facilities exacerbates losses during transport from farming regions to southern markets, leading to reduced supply amidst high consumer demand. Insufficient infrastructure and high transportation costs further challenge meat supply, as much of Nigeria’s meat production does not reach consumers effectively, contributing to the rising prices.

Furthermore, broader economic issues are influencing the crisis, including inadequate local production and a fluctuating foreign exchange market. Abia noted, “Foreign exchange has spiked from around ₦700 per dollar just 18 months ago to approximately ₦1500 today…the costs incurred from multiple road checkpoints…transmits directly to the final food prices.”

Although there are signs of inflation slowing, ongoing supply chain issues may sustain elevated food prices, complicating efforts for relief among policymakers.

The stark rise in costs related to preparing staple stews in Nigeria underscores the exacerbating cost-of-living crisis. Critical factors include supply chain disruptions, currency fluctuations, and inadequate infrastructure. The impact on low-income households is particularly severe, indicating a need for comprehensive policy responses to address the underlying economic challenges and improve food accessibility. As food prices remain high, ongoing vigilance from policymakers is essential to navigate these difficulties effectively.

Original Source: techcabal.com