Inflation Slows But Nigeria's Food Prices Still High

Food inflation reached its highest level in 12 years in March 2021 with the average price of food 22.95% more expensive than in 2020. While the rise has slowed in the last six months, headline and food inflation remained significantly high in September 2021, according to the National Bureau of Statistics. 

Inflation indicators compare prices of goods and services in 12 months. A decline does not necessarily imply a reduction in prices, instead it shows the rate at which price increases slowed, compared to previous months.

The rise in food prices became pronounced in 2018 after Nigeria closed its land borders and blocked access to foreign exchange for food importers as part of efforts to encourage domestic production. With local production not rising as expected, the measures only led to a significant rise in prices, made worse by rising insecurity.

Amid the increase, millions of working Nigerians have retained the same income and the minimum wage remains U.S$73. Many families have reported having to spend their entire salaries or a little less, just on food.

President Muhammadu Buhari has said that the significant spike in food prices is caused by middlemen who have been buying and holding essential commodities.