The cost of preparing stew in Nigeria has surged by over 121% in one year, signifying a deeper cost-of-living crisis. Ingredients like chicken and goat meat have also seen steep price increases, spurred by inflation and supply chain issues. The burden is particularly heavy on low-income earners, as they now allocate a significant portion of their salaries to basic food preparation. Economic factors, including a volatile foreign exchange market, further exacerbate food inflation challenges.
The rising cost of staples in Nigeria is exemplified by the staggering increase in the price of stew, which has risen by over 121% within a year in Lagos. The PricePally 2024 Stew Index Report indicates that a pot of beef stew now costs ₦17,817, a drastic increase from ₦8,060 in the previous year, underscoring the intensifying cost-of-living crisis faced by households due to elevated food prices and inflation.
Costs for stew ingredients have escalated significantly from 2023 to 2024. Notably, chicken stew now costs ₦15,034—up from ₦7,085 last year—while goat meat stew has surged by 153.03%, from ₦8,227 to ₦20,811. Even a stew devoid of protein has seen a sharp rise in price, increasing from ₦4,387 in previous years to ₦11,317 in 2024.
This notable increase in stew preparation costs is reflective of a broader food price surge in Nigeria, primarily driven by supply chain issues and the devaluation of the naira. As of January 2025, food inflation remains high at 24.08%, although down from 39.84% in December 2024, following the rebasing of the Consumer Price Index (CPI) by the National Bureau of Statistics (NBS).
Low-income earners are disproportionately affected by these rising costs. Under the new minimum wage of ₦70,000 per month, workers now allocate 25.45% of their earnings just to prepare one pot of beef stew monthly; this is a notable increase from the 24.42% required under the previous minimum wage of ₦33,000.
Tomato prices have significantly risen, from ₦1,506 per kilogram in July 2023 to ₦2,625 in September 2024, reflecting a year-on-year increase of 21.7%. Onions have witnessed an alarming rise, jumping from ₦971.86 per kilogram in 2023 to ₦3,000 by September 2024—a remarkable 200% increase in just nine months.
Basil Abia, co-founder of Veriv Africa, attributes some of these price hikes to the seasonality of tomatoes and losses incurred during transport and storage due to weak infrastructure, with post-harvest losses averaging between 40% to 50%, and in some regions, reaching 80%.
Meat prices have also surged significantly; beef increased from ₦4,050 per kilogram in January 2024 to ₦6,500 by September, while goat meat rose from ₦3,856 in July 2023 to ₦8,500, marking over a 120% rise within the year.
The lack of cold storage facilities further exacerbates the issue, as the intense heat during transportation from northern farms to southern markets like Lagos leads to considerable post-harvest losses. This reduced supply alongside sustained high demand for onions—integral in local dishes—has ramped up market prices.
Nigeria’s meat supply is similarly hampered by systemic challenges, with only 1.551 million metric tons of meat produced in 2023. Inept transportation systems and inadequate cold storage drastically diminish the quantity reaching consumers, inevitably inflating prices.
Broader economic issues worsen this crisis, including inadequate local production and the fluctuation of the foreign exchange market. Abia noted that the foreign exchange rate has increased from approximately ₦700 per dollar to about ₦1500 within the last 18 months, alongside escalating fuel prices and the numerous costs associated with road checkpoints—further contributing to high food prices.
While there are signs that inflation may slow, ongoing supply chain disruptions pose a risk of persistently high food prices, leaving policymakers cautious regarding sustainable relief efforts.
In summary, the continued rise in the cost of preparing staple foods, particularly stew in Nigeria, has underscored the critical impact of inflation and supply chain disruptions on households. Significant price increases in essential ingredients, combined with the challenges faced by low-income earners, highlight the urgent need for policy interventions to stabilize food prices and enhance local production capabilities. With ongoing economic challenges, particularly in the realm of foreign exchange and infrastructure, the path to equitable access to affordable food remains fraught with difficulty.
Original Source: techcabal.com
