The increase in food prices brought on by the loss of subsidies for Premium Motor Spirit, more popularly known as petrol, coincides with an increase in inflation.
Nigeria’s Consumer Price Index (CPI) increased from 22.41% when it was recoded in May 2023 to 22.79% in June.
This is in accordance with the most recent CPI report, which the National Bureau of Statistics (NBS) released on Monday.
The CPI calculates how quickly prices for goods and services fluctuate.
When compared to May 2023’s headline inflation rate of 22.41%, the headline inflation rate in June 2023 increased to 22.79%. When compared to May 2023’s headline inflation rate, the headline inflation rate for June 2023 increased by 0.38% points, according to the Bureau.
The survey also revealed a sharp increase in food inflation, from 20.60% in June 2022 to 25.25% in comparison to the previous year.
For the reviewed month, food prices increased to 2.40%, which is 0.21% points more than the rate seen in May 2023.
In comparison to the 18.60% rate reported in June 2022, the year-over-year basis rate was 4.19% higher.
“On an annual basis, the headline inflation rate was 4.19% points higher than the 18.60% rate reported in June 2022. By comparing June 2023 to the same month the year before (i.e., June 2022), this demonstrates an increase in the headline inflation rate (year-on-year basis).
Tinubu Declares a State of Food Security Emergency
Nigeria’s food security was put under a state of emergency on July 13, 2023, according to President Bola Tinubu.
The National Security Council was given the mandate by the President to oversee all issues relating to the affordability and availability of food and water, which are necessities for human survival.
According to reports, the decision was in accordance with his administration’s stance on the need of protecting the most vulnerable.
The President stated that he was not indifferent to the rising cost of food and how it affected individuals’ wallets.
The President also ordered the prompt supply of food and fertilisers to farmers and households to lessen the effects of the loss of subsidies.
In order to secure sufficient irrigation of farmlands and to ensure that food is produced all year round, the President was cited as saying, “There must be an urgent synergy between the Ministry of Agriculture and the Ministry of Water Resources.”
“We will establish and support a National Commodity Board that will monitor and analyse food prices and keep a strategic food reserve that will be utilised as a price-stabilizing tool for essential grains and other food commodities. This board will help the government control price fluctuations in food.
To accomplish this, we have the following parties on board to support President Bola Ahmed Tinubu’s intervention effort: The National Commodity Exchange (NCX), Seed Companies, National Seed Council and Research institutes, NIRSAL Microfinance Bank, Food Processing/Agric Processing associations, private sector holders & Prime Anchors, small holder farmers, crop associations, and Fertiliser producers, blenders and suppliers associations, to name a few.
“We will use our security architecture to protect the farms and the farmers so that they can go back to their farms without worrying about attacks,” said the spokesperson.
