The cost of preparing beef stew in Nigeria has surged by 121.05%, with ingredient prices more than doubling due to inflation and supply chain issues. This increase imposes significant financial strain on low-income populations as they now spend a larger percentage of their income on food. Economic challenges persist, threatening sustained relief from rising living costs.
The cost of preparing Nigeria’s essential beef stew has dramatically increased, reflecting a significant rise in living expenses across the country. According to the PricePally 2024 Stew Index Report, the price of a pot of beef stew in Lagos now costs ₦17,817, registering a 121.05% increase from ₦8,060 in 2023. This surge indicates a deeper cost-of-living crisis that households are facing amid soaring food prices and inflation.
The costs of various stew ingredients have also escalated considerably between 2023 and 2024. The price of chicken stew has risen to ₦15,034, more than double its previous year’s price of ₦7,085. Additionally, goat meat stew prices skyrocketed by 153.03%, increasing from ₦8,227 to ₦20,811. Even the basic protein-free stew has seen significant inflation, climbing from ₦4,387 in 2023 to ₦11,317 in 2024.
This steep rise in stew preparation costs exemplifies a broader trend of escalating food prices in Nigeria, attributed to supply chain disruptions and a depreciating naira. As of January 2025, food inflation was recorded at 24.08%, improving from 39.84% in December 2024, following changes in the Consumer Price Index by the National Bureau of Statistics.
The burden of these price increases acutely impacts low-income earners. With the new minimum wage set at ₦70,000 per month, a worker earning this wage would allocate 25.45% of their income to prepare just one pot of beef stew monthly, compared to 24.42% under the former minimum wage of ₦33,000.
Particular ingredients have experienced notable price hikes; for instance, tomatoes increased from ₦1,506 per kilogram in July 2023 to ₦2,625 in September 2024, marking a 21.7% rise. Onions saw an even more drastic increase from ₦971.86 per kilogram to ₦3,000, representing a stunning 200% increase within a nine-month period.
Basil Abia, co-founder of Veriv Africa, stated, “For tomatoes, one definite factor is their seasonality. When they’re out of season, it’s super expensive to get them. Tomatoes also suffer from very high post-harvest losses due to our poor infrastructure—from transportation to storage. On average, tomatoes can have a 40% to 50% loss ratio, and in some parts of Nigeria, that loss can be as high as 80%.”
Furthermore, beef prices have risen from ₦4,050 per kilogram in January 2024 to ₦6,500 by September, while goat meat has jumped from ₦3,856 in July 2023 to ₦8,500, marking an increase of over 120%. The extreme heat during transportation, particularly from northern farms to southern markets, exacerbates post-harvest losses due to insufficient cold storage.
The meat supply system encounters considerable structural challenges. In 2023, Nigeria produced 1.551 million metric tons of meat; however, poor transportation networks and inadequate cold storage facilities hinder the efficient flow of meat to consumers, leading to higher prices.
Additional economic factors also contribute to the prevailing crisis, including inflation driven by insufficient local production and fluctuations in the foreign exchange market. Abia highlighted, “Foreign exchange has spiked from around ₦700 per dollar just 18 months ago to approximately ₦1500 today. This, combined with high fuel prices and the costs incurred from multiple road checkpoints, which can add up to ₦150,000 or more, transmits directly to the final food prices.”
While there are signs that inflation may be slowing, ongoing supply chain disruptions could persist in keeping food prices elevated. Policymakers remain cautious about achieving sustained relief from these economic pressures.
In summary, the rising costs associated with preparing stews in Nigeria reflect a significant economic crisis driven by inflation, poor infrastructure, and supply chain issues. The increase in prices for staple ingredients severely impacts low-income households, with workers allocating significant portions of their income to basic food preparation. Despite potential signs of inflation slowing, ongoing disruptions may continue to burden consumers with high food prices.
Original Source: techcabal.com
