The Nationwide Bureau of Statistics (NBS) has reported a 28.98% rise within the common price of farm produce between January and Could 2025, signaling a worsening disaster in Nigeria’s agricultural sector.
The value index for farm produce surged from 110.5 in January to 142.53 in Could 2025, highlighting the intensifying stress on native meals costs, primarily pushed by escalating insecurity throughout the nation.
A worth index is a statistical measure that tracks adjustments within the worth degree of chosen items and providers over time.
It helps gauge inflation or deflation by evaluating present costs with these of a base interval.
Regular rise in farm produce index
In accordance with the NBS knowledge, the worth of farm produce has been steadily rising since January. The index stood at 110.5 in January and climbed by 1.77% to 112.46 in February. By March, the index had risen by one other 2.65% to 115.43. In April, the rise was slower at 0.88%, bringing the index to 116.46.
Nonetheless, probably the most alarming surge occurred between April and Could, when the index jumped by 22.28% to 142.53. This sharp enhance factors to the deepening disruption in agricultural production, largely on account of ongoing insecurity, which has severely affected farming actions throughout the nation, notably in areas like Benue, Nigeria’s meals basket.
Imported meals costs present stability amid home challenges
In distinction to the unstable motion in native farm produce costs, the Imported Meals Worth Index has remained comparatively secure. Beginning at 111.5 in January, the Imported Meals Index rose modestly by 1.3% to 113.4 in February.
The rise continued, however at a slower tempo, with the index reaching 113.9 in March, marking a 0.44% rise. In April, the index rose to 115.3, a 1.23% enhance, earlier than declining barely by 1.39% to 113.7 in Could.
This comparatively secure pattern in imported meals costs stands in stark distinction to the erratic fluctuations within the costs of regionally produced farm items. The extra subdued motion within the Imported Meals Index displays a world pricing setting that, whereas beneath stress, is much less affected by the home challenges dealing with Nigeria’s agricultural sector.
What it’s best to know
Nigeria’s headline inflation fee eased to 22.97% in Could 2025, down from 23.71% in April, in keeping with the most recent Shopper Worth Index (CPI) report launched by the NBS.
This represents a 0.74 proportion level lower on a year-on-year foundation and a notable 10.98 proportion level drop in comparison with Could 2024, when the inflation fee stood at 33.95%.
On a month-on-month foundation, inflation additionally declined to 1.53% in Could, in comparison with 1.86% recorded in April, signaling a moderation within the tempo of rising shopper costs.
Meals inflation, a key driver of family spending pressures, remained elevated at 21.14% year-on-year, although this marks a pointy decline from 40.66% recorded in Could 2024. The slowdown is partly attributed to the statistical base impact following the CPI rebasing to the 2024 base yr.
On a month-on-month foundation, meals inflation rose to 2.19%, up from 2.06% in April, indicating recent worth will increase in gadgets like yam, cassava, maize flour, candy potatoes, recent pepper, and Ogbono.
This rise means that whereas year-on-year inflation is moderating on account of base yr adjustments, Nigerians are nonetheless grappling with real-time worth hikes in staple meals.
The rising disparity between native and imported meals costs has raised issues over the affordability and accessibility of important meals gadgets for a lot of Nigerians, notably these in low-income brackets.
As insecurity continues to hamper agricultural production, it’s probably that the price of native meals gadgets will proceed to rise, exacerbating the already difficult {economic} setting. Speedy intervention from each the federal government and the personal sector is essential to stabilize the agricultural sector and guarantee meals safety within the nation.