Rising Costs of Stew Signal Escalating Food Crisis in Nigeria

The PricePally 2024 Stew Index Report reveals that the cost of a pot of stew in Nigeria has increased by 121.05% over the past year, consuming more than 25% of a minimum wage earner’s income. Rising prices of essential ingredients have been driven by inflation, economic instability, and logistical challenges. Many households are adjusting their spending significantly, exacerbating the food crisis in the region.

The cost of preparing a pot of stew, essential in Nigerian households, has sharply increased by 121.05% over the past year. Consequently, minimum wage earners must now allocate more than a quarter of their salary for this necessity, as detailed in the PricePally 2024 Stew Index Report. This report highlights the worsening food crisis in Nigeria, emphasizing the rising prices of staple ingredients.

The PricePally report notes that between July 2023 and September 2024, high inflation has caused key stew ingredients like tomatoes, onions, and proteins to double in price. For instance, the cost of a pot of beef stew in Lagos surged from N8,060 in 2023 to N17,817 in 2024. Similarly, chicken stew has risen from N7,085 to N15,034, while turkey and goat meat stews have seen prices escalate dramatically.

Nigerian households are significantly affected, with household consumption reportedly declining from N22.3 trillion to N10.6 trillion in real terms, primarily due to inflation reducing real incomes. Consequently, families are forced to prioritize essential spending, leading to a downturn in discretionary purchases. Although food inflation has moderated slightly, it remains a pressing issue with the rebased rate at 26.08 percent.

According to the Stew Index, the adjusted minimum wage, now at N70,000, indicates that preparing a pot of beef stew once a month consumes 25.45 percent of a worker’s wage. Comparatively, in 2023, this accounted for 26.87 percent. Notably, under the previous minimum wage of N30,000, this expense comprised nearly 60% of a worker’s income. Households preparing stew weekly incur a staggering expense that exceeds both minimum wages.

The PricePally 2024 index identifies a significant rise in the prices of essential stew ingredients surveyed across various markets in Lagos. Tomato prices surged from N1,506 to N2,625 per kilogram, while onion prices soared by 200 percent, escalating from N971.86 to N3,000 per kilogram. The prices of proteins have also jumped considerably, with beef going from N3,449 to N6,500 per kilogram, and chicken seeing an increase from N3,250 to N5,000.

The unprecedented price surges are attributed to a combination of factors including economic instability, ongoing supply chain disruptions, and climate-related challenges. The naira’s depreciation has further inflated import costs, exacerbating food prices for consumers. Additionally, insecurity in agricultural regions and logistical difficulties continue to disrupt farming and distribution, leading to price escalations. Extreme weather events have also affected the availability and cost of staple items, adding to the financial strain on households.

The significant rise in the cost of preparing stew illustrates a broader food crisis affecting Nigerian households, where inflation and economic instability are severely impacting purchasing power. Minimum wage adjustments have failed to keep pace with rising food prices, compelling households to make difficult choices regarding their spending. As essential ingredients become increasingly unaffordable, many families resort to purchasing fewer or less nutritious food options, underscoring a dire situation that warrants attention from policymakers.

Original Source: businessday.ng