The PricePally 2024 Stew Index Report indicates that the cost of preparing a pot of stew in Nigeria has surged by 121.05 percent over the past year, consuming over 25 percent of a minimum wage earner’s income. This signifies a critical food crisis, driven by inflation and economic instability. The report underscores the financial strain on low-income households as food prices escalate significantly.
The rising cost of staple foods, particularly the ingredients for preparing stew, has become a pressing concern in Nigeria. According to the PricePally 2024 Stew Index Report, the average expenditure for a pot of stew has escalated by 121.05 percent over the last year, forcing minimum wage earners to allocate over 25 percent of their income to this essential dish. This staggering figure underscores the burgeoning food crisis affecting the nation.
The report highlights a specific increase in the cost of various stew ingredients from July 2023 to September 2024. For instance, the expense for a pot of beef stew skyrocketed from N8,060 to N17,817, while chicken stew prices rose from N7,085 to N15,034 during the same period. Such increases are indicative of significant inflationary pressures impacting food security.
Additionally, the National Bureau of Statistics (NBS) reports a decline in household consumption, dropping from N22.3 trillion to N10.6 trillion in real terms. Due to inflation eroding purchasing power, households are compelled to refocus their expenditures on basic needs, curtailing discretionary spending.
Despite a drop in reported food inflation rates to 26.08 percent, the situation remains dire. The 2024 Stew Index highlights that under Nigeria’s current minimum wage of N70,000, preparing a pot of beef stew consumes approximately 25.45 percent of a worker’s monthly income when made once a month. In contrast, the same pot accounted for 26.87 percent in 2023.
Moreover, for individuals preparing stew weekly, the financial burden intensifies, consuming over 101.81 percent of the new minimum wage. The report reveals alarming data, stating, “Nigeria has more low-income earners than moderate or high-income earners, with only 14 percent of Nigerians earning over N250,000 monthly.”
In addition to tracking price trends, the PricePally 2024 report conducted a market survey across several Lagos markets, noting that the price of vital ingredients such as tomatoes and onions has doubled. For instance, tomatoes increased from N1,506 to N2,625 per kilogram, while onions surged from N971.86 to N3,000, representing dramatic price hikes.
The report attributes these surging prices to multifaceted factors, including economic instability and climatic variations. The naira’s depreciation has significantly inflated import costs, making food more expensive. Additionally, logistical issues owing to over-reliance on road transport and insecurity in agricultural regions have hindered food production and distribution, leading to further increases in prices.
In conclusion, the alarming increase in the cost of preparing stew highlights the critical food crisis in Nigeria. With minimum wage earners spending a substantial portion of their income on basic food items, the socioeconomic implications are profound. The effective rise in food prices, driven by economic instability and supply chain challenges, continues to exert significant pressure on households, necessitating urgent systemic interventions to address these challenges.
Original Source: businessday.ng
