Rice prices hit record high as Tinubu’s policies struggle

• Published On: 28 December 2024 at 07:38

The cost of rice, a key ingredient in Nigeria's beloved jollof rice, has more than doubled this year, highlighting the government's challenges in managing the country's cost-of-living crisis.

According to a market survey conducted by SBM Intelligence on Wednesday, the cost of a 50 kg bag of rice in Lagos increased by 8% in December to 75,000 naira ($48.5), while it rose to 99,000 naira in Abuja.

Other essential ingredients, such as vegetable oil, onions, and chicken, have seen price increases, highlighting Nigeria's rising inflationary pressures.

According to the National Bureau of Statistics, in Nigeria, where the minimum monthly wage is 70,000 naira, rising food prices have left two out of every three households hungry.

This crisis has resulted in riots and stampedes as President Bola Tinubu's administration struggles to combat inflation.

Despite efforts to control prices, such as declaring a state of emergency to increase food security and suspending import duties, the measures have proven ineffective.

"The cost of feeding has been steadily rising, and Nigerians are not finding it easy," said Stanley Ikechukwu, head of operations at SBM Intelligence. They're "just living everyday as it comes and hoping that the so-called government policies take a positive turn or there will be trouble in 2025," he told me.

In August, protests erupted in several Nigerian states, with demonstrators chanting "we are hungry." The unrest resulted in the deaths of at least 21 people.

Last week, tragedy struck again with stampedes at food distribution events, killing 48 people, including 35 children, according to a police post on X (formerly Twitter) on December 21.

"We earnestly pray that such misfortunes do not revisit our families and communities, and that the lives of innocents are never again cut short," Tinubu said in his Christmas message on Tuesday, referring to the stampedes.

Nigeria's annual inflation rate reached a 28-year high of 34.6% in November, with food inflation rising even faster at 39.9%, according to the NBS.

Despite the Central Bank raising the key interest rate by 875 basis points to a record 27.5% in November, prices continued to rise.

Since taking office in 2023, President Tinubu has removed the currency's peg to the dollar and eliminated fuel subsidies, which have been praised by investors but have also contributed to rising costs.

On December 23, Tinubu stated that he has no plans to implement price controls, instead announcing the purchase of 2,000 tractors and other initiatives to increase food production.

"Everything is very expensive, take onions for example: people cannot afford to buy onions especially in the quantity they want because of the high price," Ikechukwu elaborated.