The average cost of making a pot of stew, a staple in Nigerian households has risen by 121.05 percent in one year. This means a minimum wage earner desiring a basic pot of stew must part with a quarter of his salary for such luxury. This highlights the country’s deepening food crisis, according to the PricePally 2024 Stew Index Report.

The report titled, “The cost of preparing stew in Lagos in 2024” revealed that between July 2023 and September 2024, the high food inflation rate doubled the price of key stew ingredients, including tomatoes, onions, and proteins.

It said the cost of preparing a pot of beef stew in Lagos surged from N8,060 in 2023 to N17,817 by September 2024; The cost of making chicken stew also climbed from N7,085 in 2023 to N15,034 in 2024, while turkey and goat meat stew prices spiked from N7,966 and N8,227 respectively in 2023 to N17,987 and N20,817 in 2024.

Nigerian household bears the burden

According to data from the Nigerian Gross Domestic Product Report (Expenditure and Income Approach) report by the National Bureau of Statistics (NBS), household consumption also fell to N10.6 trillion from N22.3 trillion in real terms.

This decline can be attributed to inflation eroding real income, households have adjusted their spending habits by focusing only on essentials, leading to a sharp drop in discretionary spending.

Inflation has been one of Nigeria’s biggest headaches. It stood at 24.48 percent in January after the rebasing exercise.

Food inflation dropped to 26.08 percent. However, the rebased food inflation doesn’t mean a steep fall in food prices in Africa’s most populous nation in the review period.

The 2024 Stew Index Report further revealed that with Nigeria’s new minimum wage set at N70,000, a single pot of beef stew now consumes 25.45 percent of a minimum wage earner’s income if prepared once a month.

Comparatively, in 2023, it accounted for 26.87 percent of their monthly income to prepare a pot of beef stew once a month.

The report said when the minimum wage was N30,000, consumers spent 59.39 percent of their income, indicating that wage increases have failed to offset inflationary pressure on food items.

However, For those who prepare stew weekly, the financial strain is even more severe, with the cost consuming over 101.81 percent of the new minimum wage and 237.56 percent of the old minimum wage.

“Nigeria has more low-income earners than moderate or high-income earners. Only 14 percent of Nigerians earn more than N250,000 every month[12]. However, a worker earning N100,000 in 2023 would need to be earning at least N212,190 as of September 2024,” the report disclosed.

Ingredient prices doubled prices

PricePally 2024 index report revealed the average cost of ingredients for stew after conducting a market survey across multiple markets in Lagos, including Ajah, Mile 12, Mushin, and Oyingbo.

It said between July 2023 and July 2024, staple items like tomatoes, onions, and peppers have seen price increases, placing additional strain on consumers. The steepest hikes, however, have been recorded in protein sources such as beef, goat meat, chicken, and turkey.

Tomatoes, a core ingredient in Nigerian cuisine which cost N1,506 per kilogram in July 2023, climbed to N2,625 by July 2024, representing a 74.3 percent year-on-year increase. Onions saw a dramatic jump from N971.86 per kilogram in 2023 to N3,000 in July 2024, a staggering 200 percent increase in just nine months.

For proteins, the cost of beef soared from N3,449 per kilogram in January 2023 to N6,500 by September 2024. Goat meat, traditionally a pricier option, has seen an increase from N3,856 in 2023 to N9,500 by the third quarter of 2024, with some markets selling at an even higher N12,000 per kilogram.

Chicken, a staple for many households, has risen from N3,250 in 2023 to N5,000 in 2024, marking a 53.8 percent increase. Meanwhile, turkey prices have almost doubled, surging from N3,490 in 2023 to N6,670 in 2024—representing a 91 percent jump.

What’s driving the price surge?

According to the report, a combination of economic instability, supply chain disruptions, and climate-related challenges have contributed to the unprecedented price hikes.

“The continuous depreciation of the naira, from N1,450/dollar in early 2024 to N1,710 by September, has significantly increased import costs, making food items more expensive for consumers.”

“Insecurity in key agricultural regions has also disrupted farming activities and food distribution, further exacerbating supply shortages. Logistical challenges—particularly Nigeria’s heavy reliance on road transport—have played a role in escalating food prices.,” the report added.

The 2024 Stew Index report added that the effects of extreme weather have been another factor; while heavy rainfall in April 2024 temporarily lowered some ingredient costs, subsequent transportation issues led to sharp price spikes from May onwards, pushing staple items like tomatoes to record highs. (BusinessDay)