The SBM Jollof Index tracks how much it costs to make a pot of jollof rice
The cost of preparing a pot of jollof rice, a popular delicacy among Nigerians, rose from N9,917 to N10,882 from September 2022 to March 2023, a report has said.
SB Morgen, a geopolitical intelligence platform, disclosed the 9.73 per cent rise in the cost of preparing the delicacy in its latest report.
The SBM Jollof Index tracks how much it costs to make a pot of jollof rice across 13 markets in six geopolitical zones for a family of five and uses the figures to measure the inflationary trends in the country.
Nigeria's annual inflation rate rose to 22.04 per cent in March from 21.91 per cent in the previous month, the National Bureau of Statistics (NBS) said in its latest inflation report.
According to the NBS, the food inflation rate quickened to 24.46 per cent in March from 24.35 per cent in the previous month.
The commodities monitored by the Jollof Index are rice, curry, thyme, seasoning, groundnut oil, poultry, beef, pepper, tomatoes, salt, and onions.
SB Morgen's report said Nigeria is facing a persistent food insecurity crisis that is continually aggravated by insecurity, poor policies, adverse weather conditions, and international events such as the recent Russia-Ukraine war.
It said this alarming situation stems from various factors, including unstable food-producing regions, inadequate storage infrastructure, and a lack of agricultural commercialisation.
The report noted that policies ostensibly aimed at reducing food imports over the past years still have a lingering effect and increased energy tariffs have further exacerbated the problem.
"An ill-fated currency exchange attempt worsened what was already a bad situation," it said.
The report explained that despite urgent appeals from researchers and development agencies, with 25 million Nigerians estimated to face hunger between June and August 2023, no comprehensive strategy has been proposed to address this escalating crisis.
Instead, it said matters have deteriorated, with the recent cash exchange policy causing naira scarcity and worsening the situation.
Rising Prices
The report said "Over seven months, from September 2022 to March 2023, the cost of preparing a pot of Jollof rice has risen from N9,917 to N10,882, marking an increase of 9.73 per cent.
In its analysis of month-to-month fluctuations, the report said it is evident that the costs generally increased from September to January.
According to the report, the most substantial spike occurred in November, with a 6.6 per cent increase.
It added that between September and October, the index saw a more modest growth of 1.81 per cent, while January experienced a 0.88 per cent increase. This upward trend shows that the prices of essential ingredients for Jollof rice have increased.
"The period between September and November saw long petrol queues across the country, which led to supply chain disruptions and inadequate supplies of food ingredients.
"As the fuel scarcity failed to ease, the prices of items like rice and chicken increased in November as preparations for the end-of-year festivities began, which are often accompanied by increased purchases of food items by corporations and households," the report said.
To address these price fluctuations and ensure food security for Nigerian citizens, the report said the government and relevant stakeholders need to focus on improving agricultural productivity, addressing supply chain inefficiencies, and implementing measures to curb inflation.
Market Prices
The report said Wuse II consistently ranked as the most expensive market for buying necessary ingredients needed for making a pot of Jollof rice, with a cost of N13,700.
On the other hand, it said Trade Fair in Lagos offered the lowest cost for preparing the dish at N8,850.
This, the report said, illustrates the varying costs of ingredients and living expenses across different regions in the country.
From September 2022 to March 2023, the report said the cost of making a pot of Jollof rice increased in every market.
It said Port Harcourt experienced the highest percentage increase at 22.7 per cent, followed by Calabar Municipal at 14.7 per cent, Bayside Mbakpa at 13.7 per cent, and Kano at 13.3 per cent.
"These substantial increases indicate the impact of inflation and other economic factors on the cost of food items in these regions," it said.
The highest percentage increase is in the South-South region of the country.
The report added that the states with the lowest percentage increase during this period were Awka and the Trade Fair Market, with a 2.9 per cent rise.
"While these increases are still noteworthy, they are comparatively smaller than those seen in other Markets," it said.
The report said between November and March, Bauchi State experienced a sharp spike in the cost of making a pot of Jollof rice.
It said the area had been severely impacted by the 2022 flooding, which led to the loss of lives, the displacement of people, and significant damage to property, including the destruction of 8,457 houses and the submersion of 4,500 farmlands.
"The combined impact of the flooding, cash shortages, and ongoing conflict in the region led to a significant spike in food prices between November and January," it said.
According to the report, the South-East Jollof Index indicates that there were fluctuations in prices from September 2022 to March 2023.
"The data reveal a decline in prices between September and October, followed by a significant increase in November.
"This upward trend persisted through March. Comparing the data from September 2022 to March 2023, the cost of making a pot of Jollof rice in Onitsha increased by 7.9 per cent, while in Awka, it increased by 2.9 per cent.
"Although these increases are not as pronounced as in other regions, they demonstrate that price stability remains elusive in the South East," it said.
The report noted that several factors contributed to the price fluctuations in the region, including cash scarcity, intermittent insecurity issues, and the increase in prices commonly associated with festive periods.
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"These factors combined to cause the spike in November and maintain elevated prices through March," it said.
The report said the North-Central Jollof Index revealed varying price trends between different markets.
It said Wuse II, a metropolitan area, typically had higher prices than Nyanya, an outskirt market.
However, the report said as price increases affected the entire country, some people living in metropolitan areas began visiting outskirt markets to save money.
"This change in buying patterns also led to an increase in prices in the outskirt markets. When comparing the price changes from September 2022 to March 2023, Wuse II experienced a 4.2 per cent increase, while Nyanya saw a slightly higher increase of 5 per cent.
"The higher increase in Nyanya can be attributed to the influx of metropolitan consumers seeking lower prices, ultimately driving up the cost of food in these markets," it said.
In the North-West, the report reveals that prices remained high from September through January, with a slight decline in February before rising again in March.
"Comparing the cost of making a pot of Jollof rice in September 2022 to March 2023, there was a significant increase of 13.3 per cent in the region.
"Several factors contributed to these high prices in the North West. The region was affected by flooding, which resulted in the deaths of 23 people and the destruction of approximately 14,496 farms. Fuel scarcity and naira shortages further worsened the situation, increasing food prices," the report said.
