The rising cost of food in Nigeria is tightening pressure on household incomes, as fuel and logistics expenses continue to drive inflation across major cities.
A new report by SBM Intelligence shows that the average cost of cooking a pot of jollof rice—a staple meal—has climbed to N30,435 as of March 2026. This figure now exceeds 40 percent of the national minimum wage, underscoring the growing affordability crisis.
Fuel Prices Trigger Cost Surge
According to the report, the cost of preparing jollof rice rose by 19.4 percent from N25,486 recorded in October 2025. The increase is largely linked to rising fuel prices, transport costs, and persistent inflation.
Global oil market disruptions, particularly tensions involving Iran, contributed to the spike in crude oil prices. This triggered a ripple effect across Nigeria’s economy, pushing petrol prices in Lagos close to N1,325 per litre and even higher in Abuja.
Diesel prices also surged above N1,500 per litre, significantly raising the cost of transporting food items nationwide.
Logistics Bottlenecks Worsen Food Inflation
The report highlights that logistics challenges have amplified the impact of fuel price increases. Higher transportation costs have made it more expensive to move, store, and sell food items.
As a result, every component of the jollof rice basket—from rice to tomatoes—has become costlier, reflecting the central role of supply chains in Nigeria’s food inflation crisis.
Inflation Data Reflects Growing Pressure
Nigeria’s headline inflation rose to 15.38 percent in March 2026, while month-on-month inflation more than doubled to 4.18 percent. Food inflation remains particularly severe in rural areas, where transport constraints further increase costs.
Regional Price Disparities Emerge
Food prices vary widely across the country. In Abuja, Wuse II recorded the highest cost at N36,750, while Nyanya reached N31,800.
Lagos experienced the sharpest monthly increase, rising by 23.1 percent to about N28,200, driven by supply chain vulnerabilities and dependence on external food sources.
In Port Harcourt, prices surged by 55.1 percent over six months, largely due to heavy reliance on diesel-powered storage systems.
Meanwhile, some Southeast cities like Awka and Onitsha recorded slight monthly declines, although costs remain significantly higher than previous levels.
Households Adjust to Rising Costs
The report reveals that many households are adopting coping strategies to survive the rising cost of living. These include reducing portion sizes, switching to cheaper protein sources, and abandoning bulk purchases.
Some families have also moved away from cooking gas to charcoal, while others rely on nearby shops to cut transportation costs.
In certain markets, demand has weakened not because prices have stabilised, but because consumers can no longer afford further increases.
Structural Challenges Persist
SBM Intelligence noted that Nigeria’s food inflation crisis is rooted in deeper structural issues, including poor road infrastructure, insecurity in farming regions, and dependence on fuel-based logistics.
The report warns that global oil shocks have only exposed these long-standing vulnerabilities.
Outlook Remains Uncertain
Despite policy efforts, analysts say responses have been largely reactive, leaving households to bear the full burden of rising costs.
The report concludes that without major reforms in transport, energy, and food systems, food affordability in Nigeria will continue to decline.
