Key points
- OTACCWA says rising transportation and energy costs are preventing food prices from falling despite easing headline inflation.
- Food transport now accounts for 30 to 40 per cent of retail prices, with logistics costs rising sharply.
- The group cites fuel prices, exchange rate volatility and lower agricultural production as key drivers of higher food prices.
- Food inflation rose to 17.52 per cent in June even as headline inflation eased slightly to 15.91 per cent.
Main story
The Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA) says rising transportation and energy costs are keeping food prices high across Nigeria despite a slight moderation in headline inflation.
The President of OTACCWA, Mr Alexander Isong, made the observation in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
He said transportation now accounts for between 30 and 40 per cent of the retail cost of food, noting that the cost of moving one tonne of grain from Kano to Lagos had increased from about N45,000 to N70,000.
According to him, transport fares on many routes have doubled or tripled as higher petrol and diesel prices continue to raise the cost of moving, storing and distributing food.
“Petrol now sells for over N900 per litre, while diesel costs above N1,500 per litre, making food logistics increasingly expensive,” he said.
Isong also attributed persistent food price increases to exchange rate volatility and declining agricultural production.
He said rice production was projected to decline by six per cent this year, while the area under cultivation would shrink by seven per cent.
He noted that fresh pepper had recorded one of the sharpest price increases, with a basket now selling for about N45,000 compared with N15,000 previously.
According to him, tatashe prices have more than doubled, while tomatoes have risen from N52,000 to N80,000 per basket.
He added that a 50kg bag of local rice increased by about 20.5 per cent within one month, from N92,946 to N112,000, while imported rice recorded a 21.1 per cent increase over the same period.
Isong also said onions had become more expensive, with a large bag now selling for between N45,000 and N50,000, up from about N35,000.
He noted that although some food commodities recorded lower prices on a year-on-year basis, monthly prices were beginning to rise again.
According to him, beans, garri, onions, tomatoes and eggs showed annual price declines but continued to post gradual month-on-month increases.
“The year-on-year decline gives the impression that prices are falling, but the monthly figures show they are gradually rising again.
“We are coming from a very high base in 2025, so the relief consumers are seeing is only relative,” he said.
He called for sustained investment in transport infrastructure, energy and agricultural logistics to reduce the cost of food nationwide.
The National Bureau of Statistics (NBS) reported that headline inflation eased slightly to 15.91 per cent in June from 15.93 per cent in May.
However, food inflation rose to 17.52 per cent in June from 16.96 per cent in May, driven by higher prices of fresh pepper, tomatoes, crayfish, beef, garri, yam products, cassava flour, cowpea, bananas and Irish potatoes.
The issues
While overall inflation has slowed marginally, rising logistics costs, expensive fuel, exchange rate pressures and lower agricultural output continue to push up food prices, limiting relief for households.
What’s being said
“The year-on-year decline gives the impression that prices are falling, but the monthly figures show they are gradually rising again.” — Alexander Isong, President, OTACCWA
What’s next
Stakeholders are calling for greater investment in transport infrastructure, energy supply and cold chain logistics to reduce distribution costs and improve food affordability.
Bottom line
Lower headline inflation has yet to translate into cheaper food, as rising logistics and energy costs continue to drive food prices higher across Nigeria.
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