Food Inflation in Nigeria: 10 Ways to Survive 39.93% Price Hikes

Nigeria's inflation rate for November 2024 rose to 34.60%, marking the highest level recorded in 26 years. This represents a 0.72 percentage point increase from the 33.88 percent recorded in October. On a year-on-year basis, the inflation rate increased by 6.4 percentage points compared to November 2023. This surge is largely attributed to the devaluation of the naira and multiple petrol price hikes, which have intensified the country's cost-of-living crisis.

Key highlights from the report include:

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Urban inflation: 37.1% year-on-year.

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Food inflation: 39.93% year-on-year.

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Rural inflation: 32.27% year-on-year.

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Core inflation (excluding food and energy): 28.75% year-on-year.

The National Bureau of Statistics attributed the rise to higher prices of staple items such as yam, maize grains, rice, and vegetable oil. In response to these inflationary pressures, the Central Bank of Nigeria has implemented six interest rate hikes this year, totalling an increase of 875 basis points. The most recent adjustment raised the benchmark lending rate by 25 basis points to 27.50% in November.  The central bank anticipates that the effects of its policy tightening will become more evident in the first quarter of 2025. These economic challenges have been exacerbated by President Bola Tinubu's economic reforms.

 How Nigerians Can Navigate This Rising Inflation and High Cost of Living This Festive Season and Beyond

 The festive season, such as Christmas, is usually a time for joy and celebration, but the high inflation rate in Nigeria, recently hitting a 26-year high of 34.60%, poses significant challenges for the entire citizenry. Many households are grappling with the soaring cost of goods and services instead of being in a celebration mood. Food inflation at nearly 40% means even basic items like rice, beans, yam, maize, and cooking oil are now luxury commodities for most of the country’s populace. This reality is daunting, especially during the Christmas festivities, when spending tends to increase.  Managing expenses has become daunting for many, from soaring fuel prices to a volatile exchange rate and food shortages. As we approach 2025, you must adopt some practical strategies to help you manage the ever-increasing cost of living and prepare for an uncertain economic future, as the worst may not have been seen yet.

Here are some practical ways to cope with inflation and safeguard your financial stability.

 1. Prioritize Essential Spending

 The festive season often tempts people into extravagant spending. However, in times of economic difficulty, it’s crucial to focus on the basics, such as food, shelter, healthcare, and education. While it's okay to celebrate, remember that after the Christmas celebrations come bills to be paid: the house rent and children’s school fees. So, ensure your spending this period as always aligns with your financial capacity. Create a budget for the holidays and stick to it, resisting the urge to borrow for non-essential expenses. Like the Good Book says, ‘the borrower is servant to the lender’ Proverbs 22:7

Tip: Make a shopping list before heading to the market, and avoid impulse purchases.

2. Embrace Local Alternatives

Imported goods are significantly more expensive due to the devaluation of the naira. Opt for locally-produced items, which are generally more affordable. For example, choose Nigerian rice over imported brands or patronise local food markets instead of supermarkets with higher price tags, and in most case has no room for bargaining or discounts.

Reality Check: Many Nigerian families rely on "village foodstuffs" from relatives in rural areas. This tradition can save you money and ensure a steady food supply during tough times. So it will be wise to also invest in these locals and relatives to increase their agricultural activities in the coming planting season.

 7 Ways High Inflation Affects Your Income and the Economy

3. Explore Bulk Buying and Cooperative Purchases

Forming or joining cooperatives allows families and individuals to pool resources to buy items in bulk at discounted rates. For instance, a group of families can collectively purchase a 50kg bag of rice or gallons of cooking oil and share the costs. It will be cheap to buy cups as an individual.  This practice though is beginning to gain popularity as it is seeing people contributing rice or different items from January towards Christmas. Trust is an issue in this method, and it has been reported that some heads of this cooperative made away with the money. Your best bet will always be family members and close neighbours.

 Where to Start: Neighborhood or religious groups often have cooperative buying schemes. You can also negotiate better deals with traders in local markets.

4. Save on Energy Costs

With multiple petrol price hikes pushing up transportation and electricity costs, Nigerians must seek energy-efficient alternatives and switch off electric appliances and lightbulbs during the day and when not in use. Also consider cooking with a charcoal stove where feasible, carpooling, or using public transportation to cut costs.

 Long-term Goal: Invest in renewable energy sources like solar panels and inverters to reduce dependency on expensive public power sources or generators.

 Inflation's Impact on Nigeria: Insights and Coping Strategies

5. Diversify Income Streams

Inflation eats into purchasing power, making it essential to seek additional income sources. Explore side hustles, such as freelancing, copy or ghostwriting, drop-shipping, online tutoring, or small-scale trading in your house, to supplement your main income. Leveraging your skills—whether it’s baking, tailoring, or graphic design—can significantly boost your earnings.  It doesn’t matter how much you earn from your job or business presently, but extra income won't be a bad idea.

Pro Tip: Many Nigerians are venturing into small businesses like selling akara, zobo, or thrift clothes, which require minimal startup capital.

6. Practice Smart Cooking and Meal Planning

 Food waste is a luxury many can’t afford in today's economy. Plan your meals to maximise ingredients and reduce waste. If you can, cook in bulk and store leftovers properly to save money and time. Jesus after feeding the multitude, told His disciples to gather the fragments so that nothing is lost - John 6:5 -13

Example: A pot of Nigeria jollof rice can be stretched with vegetables and protein substitutes like beans or crayfish.

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7. Take Advantage of Discounts and Clearance Sales

 Many businesses offer discounts during the festive season. Aka, black-friday. Look out for sales promotions or bulk discounts at local markets and online stores. Compare prices before purchasing to ensure you are getting the best deal.

8. Foster Community Support

 During tough times, communities often come together to support each other. Leverage these networks for help, whether it’s in the form of shared resources, financial assistance, or emotional support. Churches, mosques, and NGOs also provide aid to those in need during festive periods.

Actionable Advice: Don’t hesitate to ask for help if you are struggling. Many organisations run food banks or outreach programs to support low-income families. And if you have some extra, do not hesitate to extend a helping hand to your extended family members and neighbours in need.

 13 Ways to Fight Inflation & Food Crisis, A Practical Guide 

9. Start an Emergency Fund

Although it might seem impossible to save during high inflation, setting aside even small amounts can prepare you for unexpected expenses. Use mobile banking apps or piggy banks to save a fixed percentage of your income monthly.

Pro Tip: Automate your savings to ensure consistency.

10. Advocate for Economic Reforms

While individual actions matter, systemic issues like subsidy cuts, naira devaluation, and poor governance require collective advocacy. Join conversations on economic policies and demand accountability from leaders. Engaging in community meetings, social media campaigns, or peaceful protests can amplify the call for a better economic environment.

Looking Ahead to 2025

With inflation showing no signs of slowing down, Nigerians must adopt a mindset of resilience and adaptability. Here’s a quick checklist for entering 2025 on a strong footing:

• Invest in skills development: Learn high-demand skills to remain employable and relevant in the scheme of things in today’s global economy.
•  Consider farming or gardening: Growing your food can reduce reliance on expensive markets.
•  Cut unnecessary subscriptions: Review and cancel services you rarely use. For example, if you are rarely at home, what is really the need of having a monthly TV subscription running.
•  Be financially informed: Follow economic updates to make informed decisions. Be interested in both the national, state, and local government budget.

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Final Thoughts

Nigeria’s current economic challenges demand both individual and collective action. While inflation and a high cost of living make life difficult, resourcefulness and community solidarity can help Nigerians navigate these times. Remember, survival is not just about cutting costs, but also finding new ways to thrive despite the odds. Stay hopeful, plan wisely, and keep moving forward.