The PricePally 2024 Stew Index Report reveals a 121.05% increase in the cost to prepare a pot of stew in Nigeria, with minimum wage earners spending over 25% of their income on this staple. The report attributes this rise to food inflation, economic challenges, and disruptions in supply chains, emphasizing the financial strain on households amid declining spending power.
The average cost of preparing a pot of stew, a staple in Nigerian households, has increased by 121.05 percent over the last year, causing minimum wage earners to allocate over 25 percent of their salary for this necessity. This alarming trend is reported in the PricePally 2024 Stew Index Report, attributing the rise to the country’s worsening food crisis.
The report, titled “The Cost of Preparing Stew in Lagos in 2024,” details how, between July 2023 and September 2024, food inflation significantly doubled the prices of essential ingredients such as tomatoes, onions, and proteins. For instance, the cost of a pot of beef stew rose from N8,060 in 2023 to N17,817 in 2024, while chicken stew increased from N7,085 to N15,034 within the same timeframe.
Nigerian households are experiencing a decline in consumption, with household spending reported to have fallen to N10.6 trillion from N22.3 trillion in real terms, according to data from the NBS. Inflation continues to pose significant challenges, standing at 24.48 percent in January, while food inflation reached 26.08 percent, indicating that price relief has not occurred despite the rebasing.
The index report indicates that the new minimum wage of N70,000 requires 25.45 percent of a wage earner’s income for preparing beef stew once a month, slightly lower than the previous year’s percentage of 26.87. Comparatively, past minimum wages consumed even more of the worker’s income at 59.39 percent. However, for those cooking stew weekly, their expenses exceed 101.81 percent of the new minimum wage.
The average cost of essential stew ingredients has surged as a result of numerous factors, including economic instability, which affects supply chains. Significant increases in ingredient prices are evident, with tomatoes jumping from N1,506 per kilogram in 2023 to N2,625 in 2024, and onions soaring from N971.86 to N3,000, reflecting a staggering 200 percent hike.
Other proteins such as beef and chicken have also seen significant price hikes, with beef escalating from N3,449 per kilogram to N6,500, and chicken rising from N3,250 to N5,000. This price surge can be attributed to various interconnected factors, including logistical challenges, insecurity in agricultural regions, and climatic issues affecting supply and distribution.
Further complicating matters, the depreciation of the naira against the dollar and the reliance on road transport for food distribution contribute to the increasing costs, driving prices ever higher. The outlook remains concerning as households grapple with the escalating costs of one of their most fundamental dietary staples.
In summary, the 2024 Stew Index Report reveals a significant rise in the cost of preparing stew in Nigeria, highlighting a troubling food crisis. With rising inflation and declining household consumption, the financial burden on Nigerian families continues to grow, particularly among minimum wage earners. The report underscores the complex factors contributing to these price increases, ranging from economic instability to climatic challenges, necessitating urgent attention to alleviate the impact on consumers.
Original Source: businessday.ng
