Nigeria’s imported food inflation has surged to a record high of 42.29% in November 2024, according to the latest Consumer Price Index (CPI) report from the National Bureau of Statistics (NBS).
This marks a sharp increase from 23.74% recorded in November 2023, reflecting an 18.55 percentage point year-on-year rise. Month-on-month, the inflation rate climbed by 1.33 percentage points, rising from 40.96% in October 2024.
Persistent Inflationary Pressure
The data underscores a year-long escalation in imported food prices, which began at 26.29% in January 2024 and consistently trended upward. By October, the inflation rate had breached the 40% threshold, with November’s figure of 42.29% marking the highest level in two years.
Key Drivers of Inflation
The surge in imported food prices has been attributed to several factors, including:
- Currency devaluation, which has weakened the purchasing power of the naira.
- Global supply chain disruptions, exacerbated by geopolitical tensions and post-pandemic challenges.
- Inefficiencies in domestic policies, which have hindered efforts to mitigate inflationary pressures.
Policy Delays and Rising Costs
In a bid to curb soaring food prices, the Federal Government announced a 150-day duty-free import window for essential food commodities in July 2024. The initiative aimed to reduce import costs and make staples like maize, rice, wheat, and cowpeas more affordable by subjecting them to a Recommended Retail Price (RRP).
However, the implementation of this policy has faced significant delays due to bureaucratic inefficiencies. As a result, its intended impact has yet to materialize.
The delays have exacerbated the situation, with the average price of high-quality imported rice skyrocketing by 144.77% year-on-year, according to previous reports. Between July and September 2024, the price of a kilogram of imported rice rose by 3.21%, climbing from N2,329.05 to N2,403.86.
Outlook
The relentless rise in imported food inflation has placed significant strain on Nigerian households, further deepening economic hardship. Experts have called for urgent and decisive action to address policy bottlenecks and stabilize the economy.
While the duty-free import policy holds promise, its success hinges on swift implementation and better coordination across government agencies to ensure that Nigerians can access affordable food in the near term.
