SBM Intelligence has released its third Jollof Index, x-raying the months of June – August 2017. According to the survey, while it remains biting for a family of six to put a pot of jollof rice on the dining table, food prices are stabilizing.
Prices are still high but, compared to previous indices when they kept rising sharply, SBMs new survey show some stability in food prices. “Many respondents to our survey expressed hope that in the coming quarter, food prices will drop even further as a result of the harvesting season,” according to a statement from SBM.
The SBM Jollof index tracks the prices of the main ingredients used to prepare a pot of jollof rice for a family of six. Being unrivalled as Nigeria’s ‘national’ delicacy, the market price for ingredients used in preparing a pot of jollof rice can be used to give a bird eye’s picture of national inflationary trends.
SBM’s tally of food prices has been ongoing since the second half of 2016, and while there were sharp increases in the average price quarter-on-quarter, the last quarter seems to suggest a levelling out, and in a few cases, a decline, in the cost of preparing a pot of jollof across the country.
The declines in a few geopolitical zones helped bring down the average cost of preparing a pot of jollof rice month-on-month across the country. In June it was ₦5,784, in July it was ₦5,746, and in August, it was ₦5,736.
Kano retained the most expensive place to make a pot of jollof rice, coming in at ₦7,440 per pot, while Awka and Onitsha are the cheapest at ₦5,160. In Nigeria’s commercial capital, Lagos, a pot of jollof now costs ₦5,390 on average, while in the country’s political capital of Abuja, the price is fixed at ₦5,970.
Nigeria emerged from recession in Q2 2017 with the economy expanding 0.55 percent year-on-year. However, despite the end of the recession, inflation is still very high. There is a ray of hope as figures from the National Bureau of Statistics figures released earlier this month showed that annual inflation slowed for a seventh straight month, easing to 16.01 percent.