The average cost of making a pot of jollof ricea popular delicacy among Nigerians, rose from N8,595 to N9,311 at the end of the second quarter of 2022, according to a report.
SB Morgen, a geopolitical intelligence platform, revealed the 8.3 percent increase in the cost of preparing the delicacy in its report titled “The SBM Jollof Index P2: A stitch in time saves nine”.
The SBM Jollof Index tracks how much it costs to make a pot of jollof rice in 13 markets in six geopolitical zones for a family of five and uses the figures to gauge inflation trends in the country.
Last week, the Office for National Statistics said Nigeria’s inflation rose 18.60 percent in June to its highest level in more than five years, fueled by rising food prices and high cost of diesel.
Commodities tracked by the Jollof Index are rice, curry, thyme, condiments, peanut oil, turkey/chicken (poultry), beef, bell pepper, tomatoes, salt, and onion.
rising prices
On Tuesday, the SB Morgen report said the national average shows prices continued to rise through June.
The report reads in part: “Prices for condiments, curry, pepper, vegetable oil, turkey and onions increased in most markets. The continued increase in prices can be attributed to fuel shortages, continued foreign exchange restrictions, increased insecurity and the effect of world events, especially the war between Russia and Ukraine.
“In recent months there have been fuel shortages in the main cities of the country, and this has affected the cost of transporting and storing frozen food.”
In addition, he said increased insecurity in both urban and protected areas makes it difficult for farmers to access farmland far from their homes and for traders to travel to rural areas to shop.
“Any time they take these risks, the product comes at a high cost to consumers,” he said.
Another driver of food prices, according to the report, is the cost of production, which has been affected by diesel prices.
“Right now diesel is selling for over N800 per liter versus N539.32 it was sold for at the end of the first quarter.
“This has increased operating costs for most businesses, thereby increasing the final cost of goods for consumers.
The report said that in addition to these external factors that drive prices, the internal organization of the open markets where Nigerians buy most of their groceries influences the cost of items.
He said that while these might go unnoticed when food inflation was at subdued levels, rising food prices highlight all the factors driving prices.
“Market organizations and institutions determine who gets a space, what category of groceries they sell, and how many people sell that type of groceries at a time. This not only regulates grocery prices, but also ensures farmers can’t sell directly to customers,” he said.
Cost of jollof in different markets
The report said that Bauchi had the highest cost at N11,600, followed by Wuse II at N11,300.
He said the noticeable pattern here is that northern states had a higher cost to make a pot of jollof rice despite their farming and ranching occupations.
“This trend is explained by the increase in insecurity in those states. Traders who shop at rural markets are boycotting those areas. Transportation costs have risen sharply, not only because of fuel shortages but also because of the risk involved in traveling those kidnapping-infested roads,” the report says.
He said prices have remained high in Abuja’s Nyanya and Wuse II markets between April and June.
“The items that experienced a price increase were curry/thyme, pepper, vegetable oil, onion and turkey. Tomato and beef kept their prices,” he said.
According to the report, Bauchi saw slight declines in April, but then recovered in May and declined again in June. He said the slight declines are a relief because Bauchi was the only state not to see any decline in January and overtook others as the most expensive state to cook a pot of jollof rice in Nigeria.
“Prices for rice, condiments (Knorr) and pepper fluctuated during this period, while others were stable. While rice has continued to be a staple food in the region, there is a clear case of food poverty and expected food standards have dropped considerably,” the report says.
He said that’s not surprising because the Northeast has been through 12 years of conflict. Furthermore, it costs more to buy ingredients to make a pot of jollof rice in the markets of the southeast than in the cosmopolitan markets surveyed in Lagos.
“The region, however, saw a price drop in the cost of making a pot of Jollof rice between May and June. This is due to fluctuations in the prices of curry, salt, canned tomatoes and turkey, while the prices of tomatoes, vegetable oil and beef remained stable.
“Tension in the southeast has been easing for some time after negotiations with the region’s leaders and the IPOB group.
“This explains the small drop noted in the region’s index. However, we do not know how sustainable this uneasy peace will be. Aside from this, the region is also facing other challenges such as fuel shortages affecting transportation and storage costs, keeping food prices high,” he said.
The South-West index showed price fluctuations and increases in the last three months.
He said that the Bodija market saw a bigger increase in price than Balogun and Trade Fair in June.
“Prices for vegetable oil, onions and beef increased in this region. Prices were also affected by rising transportation and storage costs as a result of fuel shortages and insecurity in the north of the country.
“While traders and shoppers in these markets complained about rising prices, their problem was mainly due to the reduced quality and quantity of their food rather than going without meals like their northern counterparts,” he said.
The report says that in the south-south region, food prices in Port Harcourt soared between April and June, while those in the Bayside and Calabar municipal markets rose steadily.
“While Calabar Municipal prices fell in June, Bayside prices remained high. Increases in the prices of vegetable oil, pepper, condiments and turkey explained the increase in prices in Port Harcourt. As in other urban areas, fuel shortages and blackouts drove prices up in Port Harcourt,” he said.
According to the report, the Kano Jollof index maintained an increase after rising in the last quarter, but slightly decreased in June.
“Prices for vegetable oil and tomatoes (fresh and canned) fell slightly while turkey prices rose. The same problems affecting the other cities also affected Kano’s insecurity and increased energy costs,” the report says.
The report says Nigerians are running out of coping strategies and are in danger of starvation if steps are not taken to cushion the effect of rising world rice prices.