A recent report from the National Bureau of Statistics (NBS) revealed a significant rise in the prices of essential food items in Nigeria.

Key staples like beef, rice, beans, garri, and yam have experienced substantial price increases over the past year. In the NBS’s Selected Food Prices Watch for March 2024, the average price of 1kg of boneless beef surged by **73.78%** year-on-year, jumping from ₦2,479.61 in March 2023 to ₦4,309.16 in March 2024.

– The month-on-month increase from February 2024 alone stood at **17.91%**.
– Year-on-year, the price of 1kg of local rice rose significantly by **152.93%**, climbing from ₦530.08 in March 2023 to ₦1,340.74 in March 2024.
– Brown beans experienced a **106.78%** year-on-year price increase, going from ₦596.96 to ₦1,234.40.
– White garri, a staple in many Nigerian households, saw its price surge by **112.34%** from ₦353.16 per kg in March 2023 to ₦749.89 in March 2024.

– The price of 1kg of yam tuber increased by **141.25%** from ₦443.02 to ₦1,068.78 during the same period.
– The report’s state profile analysis highlighted geographical disparities in food prices.
– **Kwara State** had the highest average price for 1kg of boneless beef at ₦5,500, while **Benue** had the lowest at ₦3,400.22.
– **Niger State** had the highest price for 1kg of local rice at ₦1,699.98, while **Benue** had the lowest at ₦985.83.

– **South-South region** had the highest average price of **₦5,087.89** per 1kg of boneless beef.
– **South-West** and **South-South zones** had the highest prices for local rice at **₦1,526.95** and **₦1,469.39**, respectively.
– **South-East** recorded the highest prices for brown beans at **₦1,465.87**.

Central Bank of Nigeria (CBN) data reveals that Nigeria spent $1.12 billion on servicing foreign debts in Q1 2024, up by 39.7% from Q1 2023’s $801.36 million.

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Debt service payments in Nigeria have been on the rise, with $560.52 million spent in January 2024 compared to $112.35 million in January 2023.
February and March showed some moderation with $283.22 million and $276.17 million in debt payments, respectively, but the burden remains significant.

The rise in debt service payments has significantly affected the outflow of dollars from Nigeria. Nairametrics mentioned that around 70% of the country’s official dollar outflows in the first quarter were allocated to debt servicing, a notable increase from 49% in the first quarter of 2023.

This increase in debt servicing has absorbed a substantial portion of Nigeria’s financial resources, prompting worries about the sustainability of these expenditures.

During these financial difficulties, Nigeria’s foreign exchange reserves have seen a notable decrease, mainly due to these substantial debt repayments and other regular financial commitments.

Yemi Cardoso, the Central Bank Governor, emphasized that the decrease in reserves was not a result of defending the naira but rather due to fulfilling international obligations.

The World Bank has raised serious concerns about the increasing debt service burden affecting developing nations globally. Indermit Gill, the World Bank’s Chief Economist and Senior Vice President, cautioned about the risk of a widespread financial crisis without coordinated measures.

The combination of unprecedented debt levels and surging interest rates poses a significant threat to several developing countries, such as Nigeria, potentially triggering severe economic turmoil and necessitating tough choices regarding resource distribution.

By 2023, Nigeria’s external debt service had surged to $3.5 billion, marking a 55% rise from the $2.6 billion reported in 2022. These statistics highlight the critical importance of implementing effective fiscal strategies and holistic debt relief initiatives to address the nation’s financial hurdles.

One market leader states that there is no Specific price manipulation in Lagos Markets.

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The Federal Competition and Consumer Protection Commission (FCCPC) met with market leaders and traders in Lagos on Wednesday to probe the ongoing rise in Food prices in markets.

Ms Suzie Onwuka, Head of the Lagos Office of FCCPC, disclosed the reasons for meeting with market leaders of Mile 12 Market and Oke-Odo Market, Ile-Epo in Lagos, while briefing journalists.

Onwuka explained that the engagement aimed to gather insights directly from stakeholders to understand the factors contributing to rising food prices, a major concern for consumers nationwide.

The News Agency of Nigeria (NAN) reports that the commission’s investigative mission prioritises consumer protection and competition issues, particularly regarding the affordability of foodstuffs.

She highlighted insecurity, particularly its impact on agricultural produce, and the removal of fuel subsidy as key factors influencing the increasing cost of transportation, which subsequently adds to food prices.

According to her, the practice of hoarding grains during dry seasons and releasing them during rainy seasons for planting purposes exacerbates price fluctuations and sustains high prices.

She stressed the importance of stakeholders collaborating to address the challenges and stabilize food prices for consumers.

Alhaji Shehu Usman, Chairman of the Mile 12 International Perishable Market Association, affirmed the market leaders’ commitment to collaborating with the Lagos State Government in agricultural ventures to enhance food security.

Usman highlighted efforts to secure land for farming activities, including tomato cultivation, to complement existing produce.

Addressing the inflationary trend, Usman clarified that there was no deliberate price manipulation within the market.

He attributed the spike in food prices to disruptions in agricultural activities caused by insecurity.

This, he added, led to the movement of some Northern farmers from their base to Internally Displayed Camps (IDPs), due to security threats posed by bandits.

Alhaji Taofik Olorunkemi, the Baba-Oja of Oke-Odo Market in Ile-Epo, supported Usman’s views regarding the increase in prices of food items.

He emphasised the challenges posed by the high cost of transporting goods from farms to urban centres and the continuous increase in food prices with each new produce entering the market.

Olorunkemi also highlighted the impact of the removal of oil subsidy on food prices and expressed concerns about the reluctance of the youth to pursue farming opportunities due to modernisation.

The market leader commended the federal government for providing adequate security measures to safeguard farmers and agricultural operations.

He stressed the need for a secure environment to enable effective cultivation.

Meanwhile, some market traders who spoke to journalists said they empathise with Nigerians but find it more distressing that they have to sell based on the cost price.

They urged the federal government not to relent in its efforts to alleviate the hardships faced by Nigerians.

Black Market Exchange Rate for Dollar to Naira on 9th June:

The exchange rate at the Lagos Parallel Market (Black Market) was buying a Dollar for N1490 and selling at N1495 on Sunday, 9th June 2024, according to Bureau de change (BDC) sources.

Current Black Market Exchange Rate

(Aboki Dollar Rate):

Buying Rate: N1490
Selling Rate: N1495

CBN Exchange Rate Today:
Buying Rate: N1484
Selling Rate: N1485

The Central bank of Nigeria (CBN) does not recognize the parallel market and advises individuals to use their respective banks for forex transactions.

IMF’s Inflation Rate Prediction for Nigeria:

IMF predicts Nigeria’s inflation rate will stabilize at 14% in 2029, a decrease from the current rate of 33.69% as of April 2024, as reported by the National Bureau of Statistics.

The IMF projects a gradual decline in inflation from 23% in 2025 to 16% in 2026, 15.4% in 2027, leading to stabilization at 14% in both 2028 and 2029.

This forecasted stabilization brings relief amidst concerns about Nigeria’s escalating inflation, providing a positive outlook for the economy facing challenges with rising inflation and interest rates.

The National Gold Purchase program has been overhauled by the Federal Government to enhance the country’s reserves and strengthen the value of the Naira.

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The Minister of Solid Minerals Development, Henry Dele Alake, brought attention to this policy as he presented the most recent gold bar obtained from artisanal and small gold miners, which had been refined by an agency under the Ministry, to President Bola Ahmed Tinubu in Abuja. Alake praised the President for backing reforms in the solid minerals sector and expressed confidence that the sector would soon enhance the nation’s reserves.

The Solid Minerals Development Fund complies with the London Bullion Market Association Good Delivery Standard, as stated by him.
Alake mentioned that the refined gold will be sold to the Central Bank of Nigeria to enhance foreign reserves.
Alake highlighted the importance of the occasion, noting that it signifies the initial commercial transaction within the National Gold Purchase Program (NGPP), a centralized off-take scheme backed by a decentralized network of artisanal and small-scale miners and cooperatives for aggregation and production.

He said, “The successful completion of the first commercial transaction clearly demonstrates the National Gold Purchase Program’s effectiveness. It has increased the nation’s foreign reserves assets and shown that using the Nigerian Naira to purchase a liquid asset traded in United States Dollars, such as gold, is a viable strategy.

“This transaction has also underscored the potential of the National Gold Purchase Program to enhance fiscal and monetary stability.”

Alake reported that the initial commercial transaction resulted in a $5 million boost to Nigeria’s foreign reserve assets, over 70 kilograms of gold refined to the London Bullion Market Good Delivery Standard, and the successful pooling of locally mined gold, injecting approximately NGN6 billion into the rural economy.

Tinubu praised the Ministry for reaching a significant milestone in the government’s efforts to diversify the economy, as symbolized by the bar displayed.

“This is another concrete step towards the diversification process under the Renewed Hope Agenda” the President said.

In her statement, Fatimah Shinkafi, the Executive Secretary of the Solid Minerals Development Fund, mentioned that the London Bullion Market Gold Delivery Standard is a widely acknowledged, strict, and reliable standard that facilitates worldwide trading in gold and silver bars.

“Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London,” she said.

Shinkafi stated that Nigeria has become part of a special group of nations that are increasing their gold reserves by buying gold using local currency. This initiative aims to boost economic confidence, stabilize the currency, and attract more foreign investments.