2 weeks ago
1
- The African Exchange has projected that Nigeria would experience historical rise in food prices in 2025
- The report projected that the prices of maize, soybeans, paddy rice, sorghum and ginger would record substantial increases
- This is due to reduced domestic production levels, export of food crops to international markets and rising logistics costs
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Nigeria is expected to see a historic increase in food prices in 2025, according to the African Exchange (AFEX), as a result of lower domestic production levels, food crop exports to foreign markets, and increased logistics expenses.
Source: Getty Images
The forecast is included in the "AFEX 2024 Wet Season Crop Production Report Nigeria," which included key commodity crops like cashew, cocoa, soybean, sorghum, sesame, paddy rice, ginger, and maize and sampled 47,364 farmers from Nigeria's six geopolitical zones, ThisDay reported.
According to the report, lower input utilisation, restricted access to input financing, and the effects of climate shocks are some of the factors that may impair Nigeria's food output in the 2024–2025 season.
According to AFEX,
“Commodity prices are projected to rise to historical highs in the new season (2024/2025), driven by reduced production levels, growing international demand, and rising logistics costs, pressured by the fuel price hikes.”Food inflation is high
According to the report, Nigeria's food security picture is exceptionally dire, especially in light of the country's record-breaking 37.5% food inflation rate.
It, therefore, warned that, “if swift action is not taken, the already high levels of food insecurity in the country are likely to worsen. Recent climate shocks have severely impacted staple crops, damaging thousands of farmlands and constraining output.”
The report projected that the prices of maize, soybeans, paddy rice, sorghum and ginger would record substantial increases in the 2024/2025 season.
It said,
“Looking ahead to the 2024/2025 season, maize prices are expected to continue their upward trajectory.“With the season starting at a historical base price of over N650,000 per metric ton, we anticipate the average price to rise to around N910,000 per metric ton, representing a 48 per cent seasonal increase.”According to the report,
“without the implementation of effective price controls and agricultural policies to stabilise supply and manage inflation, maize prices could escalate even further, potentially reaching an average of N1,200,000 per metric ton during the season.Price of rice to increase again
It projected that the paddy rice per metric ton will increase significantly.
“By the third quarter of 2025, we expect paddy rice prices to be within the range of N1,100,000 to N1,300,000 per metric ton.”Additionally, according to the AFEX research, sorghum prices would rise by an astounding 102% during the 2023–2024 growing season.
“The average price during 2023/2024 season was N640,000 per metric ton. Looking ahead, prices are expected to reach an average of N1,000,000 per metric ton, with a strong upward trend anticipated starting in Q1 2025.“This anticipated surge will be largely driven by the expected depletion of maize supply, which will increase demand for sorghum as a substitute.”FCCPC speaks on solution to food price hike
Legit.ng reported that in response to the nationwide rise in food prices, the Federal Competition and Consumer Protection Commission (FCCPC) has advised Nigerians to be patient.
This was stated on Tuesday during an interactive session with traders at the Dawanau and Galadima markets in Kano, as reported by NAN.
Adamu Abdullahi, the acting executive vice chairman of the FCCPC, said that the government is making appropriate efforts to address the problem.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
English (US) ·