The cost of preparing stews in Nigeria has dramatically increased, with beef stew prices rising by over 121% in a year. This trend reflects broader inflationary pressures, significantly impacting low-income households. Ingredient prices for tomatoes, onions, and meat have surged due to supply chain disruptions and foreign exchange instability, resulting in ongoing burdens for consumers.
Nigeria is experiencing a significant cost-of-living crisis, particularly in Lagos, where the price of preparing staple stews has more than doubled within a year. The PricePally 2024 Stew Index Report indicates that the cost of a pot of beef stew has soared by 121.05%, increasing from ₦8,060 in 2023 to ₦17,817 in 2024. This rise is attributed to surging food prices and inflation impacting household budgets across the nation.
Ingredient costs for various types of stew have escalated dramatically from 2023 to 2024. The price of chicken stew has more than doubled from ₦7,085 to ₦15,034, and goat meat stew has spike by a remarkable 153.03%, raising the cost from ₦8,227 to ₦20,811. Even a protein-free stew has risen significantly, climbing from ₦4,387 to ₦11,317 over the same period.
This sharp increase in stew costs aligns with an overall trend of rising food prices driven by supply chain disruptions and the depreciation of the naira. The National Bureau of Statistics reported food inflation at 24.08% in January 2025, a decrease from 39.84% in December 2024 due to adjustments in the Consumer Price Index that reshaped the inflation basket’s key components.
Low-income earners are the most affected by these escalating costs. With the new minimum wage set at ₦70,000 per month, a minimum wage earner would need to allocate 25.45% of their salary to prepare a single pot of beef stew. In contrast, under the previous minimum wage of ₦33,000, this figure was 24.42%.
The costs of basic ingredients have surged as well. Tomatoes increased from ₦1,506 per kilogram in July 2023 to ₦2,625 by September 2024, a year-on-year rise of 21.7%. Onions experienced an astounding 200% increase, jumping from ₦971.86 per kilogram in 2023 to ₦3,000 by September 2024.
As stated by Basil Abia, co-founder of Veriv Africa, “For tomatoes, one definite factor is their seasonality… Tomatoes can have a 40% to 50% loss ratio, and in some parts of Nigeria, that loss can be as high as 80%.”
Prices for meat have also escalated significantly. Beef saw an increase from ₦4,050 per kilogram in January 2024 to ₦6,500 in September, while goat meat rose from ₦3,856 to ₦8,500—over 120% higher than a year ago.
The challenges faced by the meat supply chain are particularly pronounced. Without adequate cold storage infrastructure, particularly during hot weather conditions, post-harvest losses increase when transporting from farms in the north to markets in the south, like Lagos. This reduced supply, coupled with strong demand for ingredients essential in Nigerian cuisine, contributes to higher prices.
Nigeria’s meat production totaled 1.551 million metric tons in 2023, but poor transportation infrastructure and insufficient cold storage capabilities prevent a substantial share from reaching consumers, resulting in higher prices. Broader economic issues also exacerbate the crisis, including inflation caused by inadequate local production and instability in the foreign exchange market.
Abia highlighted these economic pressures: “Foreign exchange has spiked from around ₦700 per dollar just 18 months ago to approximately ₦1500 today… This, combined with high fuel prices and the costs incurred from multiple road checkpoints, transmits directly to the final food prices.” While inflation may be slowing, ongoing supply chain issues could sustain elevated food prices, leaving policymakers concerned about long-term relief.
The article underscores the alarming rise in food prices in Nigeria, particularly in Lagos, as evidenced by the steep increase in the cost of preparing staple stews. The significant inflation rates, surging ingredient prices, and structural challenges within the food supply chain notably impact low-income households. Economic factors such as foreign exchange volatility further exacerbate these issues, jeopardizing any potential relief and highlighting the need for policy intervention to address these persistent struggles.
Original Source: techcabal.com
