Prices of Food, Commodities in Nigeria Expected to Rise Further in 2024

Prices of Food, Commodities in Nigeria Expected to Rise Further in 2024

  • Present escalating food prices in Nigeria are expected to continue through 2024
  • A report by AFEX reveals that prices will continue to surge if the right policies are not put in place
  • The report highlights the substantial hurdles posed by food insecurity and inflation in Nigeria

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The persistence of escalating food prices, as observed throughout this year, is expected to contribute to ongoing food security challenges, thereby impeding the African continent's ability to attain the goal of zero hunger by 2030.

This forecast is drawn from the 2023 Crop Production Report recently published by AFEX, a prominent commodities player in Africa.

The report, unveiled over the weekend, underscores the substantial hurdles posed by food insecurity and inflation, particularly in Nigeria.

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Food commodities
The crop production report focuses on six critical commodities: Maize, Paddy rice, Soybean, Sorghum, Cocoa, and Sesame. Photo credit - QAssurance, AgFunder
Source: UGC

Rising food insecurity crisis in Nigeria

The country faces a significant deficit of 5.7 million metric tonnes in human consumption and agro-processing, coupled with an unprecedented food inflation rate of 31.52% for October 2023, as the National Bureau of Statistics reports.

Nigeria faces a significant food security crisis, as reflected in its Global Hunger Index score, which stands at a concerning 109th out of 125 countries.

The findings align with the recent projections of the Food and Agriculture Organisation (FAO), forecasting that by 2024, approximately 26.5 million people in Nigeria will be contending with elevated levels of food insecurity.

The report stated:

On pricing, the report forecasts an increase in prices for all commodities on the basis of a general decline in production coupled with increasing demand across processing and exports.

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Report highlights development in the sector

According to The Guardian, the crop production report focuses on six critical commodities: Maize, Paddy rice, Soybean, Sorghum, Cocoa, and Sesame.

It employs farmer surveys and transaction-level measurement data to monitor essential information related to crop production, pricing trends, and market dynamics.

The report aims to enhance the comprehension of the current food system and equip stakeholders in the commodities market with actionable insights for data-driven trading decisions in the upcoming season.

It underscores a noteworthy advancement in the accessibility of farmland for cultivation in critical areas, as well as a rise in the utilization of improved inputs, such as high-yielding seeds and fertilizers, compared to the previous season.

Despite these positive developments, the report also highlights a persistent challenge in input lending, indicating that agriculture accounted for only 6.16% of bank lending in 2022.

Addressing the report's launch, Akinyinka Akintunde, the President/CEO of AFEX Nigeria, emphasized that the report aims to bridge a crucial gap by establishing a dependable data repository.

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Its objective is to promote market education and facilitate precise trading decisions through the availability of accurate information.

Speaking to Legit.ng about the rising prices of food in the market, Nurudeen Ahmed, a foodstuff seller in Ketu market, Lagos, said that retailers should not be blamed for the hike in prices.

He said:

A lot of people come to the market and seem to think that we are greedy and responsible for the increased prices of these items. We only sell relative to how much we buy them. The factors mostly responsible for these hikes usually happen before they get to us here in the market.

Price of rice to crash as links Nigeria, other countries as top importers

In related news, Legit.ng reported that in an analysis by the Economic Research Service of the United States Department of Agriculture (USDA), Nigeria is anticipated to emerge as a major global rice importer, projecting an import of approximately 2.1 million metric tons in 2024.

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The report forecasts that the worldwide rice industry will reach around 52.85 million tons by 2024, with increased exports from Brazil and South Korea and heightened imports expected from Burkina Faso, Indonesia, and Nigeria.

The study also predicts a decline in rice production in Nigeria and seven other countries.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.

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