ABUJA, NIGERIA – The Economic Coordination Council, formed by President Bola Tinubu, has raised alarms over the dramatic rise in the cost of tomatoes in Nigeria, which has escalated from N40,000 to N150,000 per bag within a year.
Bismark Rewane Highlights Food Inflation
During a live broadcast, Bismark Rewane, a member of the Council, highlighted the adverse impact of food inflation on Nigerians. Rewane explained, “How does this affect you? In cities like Inie and Jeffrey, a bag of rice cost N35,000 last year; today, it’s N80,000, an increase of 129 percent. Garri was N28,000 last year; it’s now N50,000. Beans were N30,000 last year; now, it’s N95,000, up by 217 percent. A loaf of bread was N900; now it’s N1,600. A tuber of yam was N2,000; now it’s N10,500. The big problem is tomatoes: last year, N40,000 per bag; now it’s N150,000.”
Broader Economic Impacts
Rewane elaborated on the broader impacts, including non-food items. “A night bus from Lagos to Abuja was N20,000 last year; now it’s N33,000, up 68 percent. Toiletries were N300; now it’s N500, up 67 percent. A flight from Lagos to Abuja was N38,000; now it’s N80,000, up 111 percent. Lagos to London flights dropped from N2.6 million to N1.4 million.”
Inflation and Economic Growth
He further discussed the inflation rates and economic growth. “Before, we were growing at 2.91 percent. This year, we are now growing at 2.87 percent, so our growth has declined by 0.04 percent. Headline inflation was 22.41 percent when President Tinubu took office. It is now 33.69 percent, so it has deteriorated by 11.28 percent. Food inflation was 24.82 percent; it is now 40.53 percent. It has deteriorated by 15.71 percent.”
Exchange Rates and Fuel Prices
Rewane also touched on exchange rates and fuel prices. “The exchange rate on May 29 last year was N765 to a dollar in the parallel market. Today, it’s at N1,520, essentially doubling and declining by 100 percent. The price of diesel was N840 per litre last year; today, it’s N1,200, although it had reached N1,700 before Dangote brought it down to N1,200, an increase of 43 percent. Petrol (PMS) was N190 per litre, highly subsidized; today, it’s N580 in most parts of the country, even N617, increasing by 205 percent.”
Positive Developments
Despite the challenges, Rewane acknowledged some positive developments. “We were producing 1.15 million barrels per day last year. Now, it’s 1.28 million barrels, a marginal increase of about 11 percent. The total Federal Allocation Committee shared N10.92 trillion last year, which has increased to N14.39 trillion due to subsidy removal and reduction, a 31.78 percent increase. Total external debt was $42.7 billion last year; today, it is $42.5 billion, a slight improvement. External debt per head was $179 per Nigerian last year; now it’s $178 per head.”
Economic Metrics and Impact
Rewane provided an analysis of various economic metrics, noting both improvements and setbacks. “The gross fixed investment, which drives growth, was $154 billion last year; it is now down to $105 billion, a 31 percent decrease. Stock market capitalization was N30 trillion last year, now it is N55 trillion, an 83 percent increase. National savings as a percentage of GDP decreased from 33 percent to 29 percent. Life expectancy improved from 55.8 years to 56.1 years. Ships waiting at Nigerian ports increased from 12 to 15, a 25 percent improvement. Grid collapses reduced from 12 times last year to five times this year.”
Conclusion
Rewane categorized his review into three broad views: the good, the bad, and the ugly. “The good: Tax and other revenues have more than doubled; FAAC increased to N14.39 trillion; Dangote Refinery and other modular refineries commenced operations; Forex backlog cleared by over half; credit rating upgraded to B; oil production increased to 1.34 million barrels per day; and international fares reduced. The bad: Nigeria fell from the 32nd largest economy in the world to 42nd; in Africa, from 1st to 4th; inflation increased from 24% to 33%; public debt rose to N97 trillion. The ugly: Terrorist attacks continue; power grid collapses persist; multinationals like Procter & Gamble exited; the cost of living crisis persists; food inflation is rising, driven by post-harvest losses, insecurity, and poor storage.”