The cost of making a pot of stew in Nigeria has surged by over 121% in one year, consuming a significant portion of minimum wage earners’ income. The PricePally 2024 Stew Index Report highlights a dire food crisis driven by inflation, increased ingredient costs, and economic instability. Households are reallocating spending towards essentials, with prices for staples such as tomatoes and proteins experiencing dramatic increases.
In Nigeria, the average cost of preparing a pot of stew has escalated by 121.05% within a year, causing minimum wage earners to expend over 25% of their monthly income on this essential dish. This rise underscores the growing food crisis in Nigeria, as reported by the PricePally 2024 Stew Index Report.
The report details that the price for a pot of beef stew in Lagos increased from N8,060 in 2023 to N17,817 by September 2024. Meanwhile, chicken stew rose from N7,085 to N15,034, and the costs of turkey and goat meat stew saw similar spikes, with prices increasing from N7,966 and N8,227 to N17,987 and N20,817, respectively, in the same period.
Household consumption in Nigeria has dropped significantly, from N22.3 trillion to N10.6 trillion, largely due to inflation which has hampered real incomes. Families have adjusted their spending to prioritize essential items, resulting in a substantial reduction in discretionary expenses. With the inflation rate recorded at 24.48% in January 2024, food inflation stands at 26.08%, reflecting persistent high prices rather than a significant decrease.
As per the new minimum wage of N70,000, a 2024 report shows that one pot of beef stew now accounts for 25.45% of the monthly income if prepared once a month. In comparison, under the previous minimum wage of N30,000, consumers spent 59.39% of their income. For those making stew weekly, the financial burden is heavier, exceeding 101.81% of the new minimum wage.
The PricePally 2024 index report highlights a significant rise in staple ingredients. Tomatoes have surged from N1,506 per kilogram in July 2023 to N2,625 in July 2024 (74.3% increase). Onions jumped by 200%, from N971.86 to N3,000. Protein sources like beef have seen rises from N3,449 to N6,500, while goat meat increased from N3,856 to N9,500. Chicken and turkey have also surged, reflecting the rising costs throughout the food supply chain.
Several factors are driving these price increases, including economic instability, currency depreciation from N1,450 to N1,710 per dollar, supply chain disruptions, and agricultural insecurity. Additionally, the effects of extreme weather—including heavy rainfall followed by transportation issues—have led to significant price volatility in food items, notably tomatoes.
The comprehensive economic landscape reveals that the ongoing inflation and rising food costs are straining Nigerian households, making basic food items increasingly unaffordable for the lower-income population.
The steep rise in the cost of making a pot of stew in Nigeria illustrates the severe impact of inflation and economic instability on household finances. With a significant portion of a minimum wage earner’s salary now absorbed by essential food items, the trend demonstrates the pressing need for economic reform and relief measures to address the escalating food crisis. Without intervention, the financial strain on households is projected to worsen, threatening food security across the nation.
Original Source: businessday.ng
