Food Inflation: Beans now out of reach– Rewane

Bismarck Rewane, Managing Director of Financial Derivatives Company Limited, has highlighted a significant increase in the price of beans, even as other food commodity prices have slightly dropped in recent days.

Speaking on Channels Television’s Business Morning segment of Sunrise Daily on Thursday, Rewane noted, “Onions have sharply reduced to ₦115,000, and rice is now ₦110,000, down from ₦120,000. However, beans have become scarce and expensive, going out of storage and out of reach.”

Market checks confirmed that a paint rubber of beans is now sold for ₦13,000, while a derica costs ₦3,000, with a full bag reaching as high as ₦180,000. Rewane attributed this price surge to the flooding in key food-producing states like Borno, Bauchi, and Sokoto, which has severely impacted agricultural output.

“Flooding has destroyed a lot of goods,” Rewane said, adding that the rise in petrol prices—now at around ₦1,000 per litre—has also increased transportation costs for moving produce from farms to markets.

Rewane further predicted that food inflation would continue to rise in the coming weeks but expressed optimism that duty waivers on imported commodities could help stabilize prices. “We expect headline inflation to increase to 34%, but this will be temporary. Once the imported goods benefiting from duty waivers arrive, prices should begin to ease,” he explained.

President Bola Tinubu, in his Independence Day broadcast on October 1, 2024, emphasized the government’s focus on restoring peace to the North, allowing displaced farmers to return to their farmlands and boost food production. “We expect a leap in food production and a drop in food costs. We will not falter on this,” Tinubu assured.

Nigeria is currently facing unprecedented food inflation, driven by the removal of the petrol subsidy and the unification of foreign exchange windows in May 2023. In August, the country’s inflation rate stood at 32.15%, with food inflation soaring to 37.52% compared to 29.34% the previous year. Rising costs of staple foods such as bread, grains, and vegetable oils are among the key drivers of inflation.

Despite efforts by the government and state governors to implement palliative measures, many Nigerians continue to struggle with escalating food prices and economic hardship.