Nigeria’s cost of preparing jollof rice increases 4.98% in Q3 2021 – Nairametrics
The cost of making a jollof rice pot for a family of five increased 4.98% to N8,007.50 in the third quarter of the year.
This was disclosed in the quarterly report of the SBM Jollof Index for the third quarter of 2021, published by SBM Intelligence.
The report found that cooking gas prices affected the costs of food prices as it said gas sold through gas retail outlets increased from N500 per kg in June to N700 per kg in September. , affecting the cost, which fell from N7,618 in June 2021 to the second quarter of 2021.
What the report says
- The cost of making a jollof rice pot for a family of five remains high across the country. On average, it will cost N 8,007.50, which is higher than the average cost for the second trimester of N 7,618, a percentage difference of 4.98.
- It will cost the most to make a jollof rice pot in Nyanya, Abuja at N 10,050 and it will cost the lowest in Akwa, where the cost is N 6,910.
- Since overtaking Kano in Q3 2018, Abuja markets have had the highest cost to make a jollof rice pot, especially at Wuse market.
- Food prices in Nyanya (a market on the outskirts) have exceeded prices in Wuse, a market right in the center of Abuja, ”they said.
The reasons for the increase
The report states that the cost of cooking gas has increased steadily over the past three months, which has therefore had an effect on the cost of cooking jollof rice.
Respondents told SBM that gas sold through gas retail outlets fell from 500 N per kg in June to 700 N per kg in September. They have simply reduced the recharge weight per visit to the gas recharging plants, and there is no long term solution in sight.
The survey added that the price of cooking gas has increased astronomically, with the National Association of Liquefied Petroleum Gas Marketers (NALPGAM), an umbrella organization for the marketing of cooking gas warning that the price of filling a cylinder of gas of 12.5 kg could reach 10,000 N by December. .
“Nigerian consumers are price sensitive and as such will explore substitutes, mainly dirty fuels, which represents a setback for the efforts of the government and key private and civil society actors to accelerate adoption. gas in Nigeria’s homes and kitchens. Before the sharp rise in prices, the cost of switching from dirty fuels to cooking gas was a drag for most consumers, especially in rural and peri-urban areas ”, said the report.
He insisted that the concept of governance places the responsibility for effecting change not only on government, but on multiple actors, including the entire food supply chain including farmers, processors, distributors and end consumers.
The report said that a multi-stakeholder strategy that ensures sustainability is needed to stabilize prices, including improving market information; invest in agricultural interventions that would improve production levels; safe investment in agriculture; invest in food storage infrastructure and remove import restrictions on essential food items.
“We recommend that addressing food insecurity issues take a ‘whole of society’ approach – involving the participation of different stakeholders throughout the food supply chain rather than a top-down approach,” SBM added.
What you should know
- For the second quarter, Nairametrics reported that the cost of cooking a pot of Jollof rice was N7,618 in June 2021, marking an increase of 6.93% over a three-month period.
- Nigeria’s headline inflation in September 2021 fell further to 16.63% from 17.01% recorded the previous month, according to the recently released CPI report for September by the National Bureau of Statistics.
- Food inflation, which is a closely watched index, also fell to 19.57% in September from 20.3% recorded the previous month, while core inflation rose to 13.74%, in 0.33% increase from 13.41% recorded in August 2021.