The Organisation for Technology Advancement of Cold Chain in West Africa (OTACCWA) states that high transportation and energy costs are keeping food prices high across Nigeria, despite easing headline inflation.
OTACCWA President Mr. Alexander Isong made this observation in an interview with reporters on Wednesday in Lagos.
He explained that transportation now accounts for between 30 and 40 percent of the retail cost of food, with the cost of moving one tonne of grain from Kano to Lagos rising from about N45,000 to N70,000.
He noted that transport fares on several routes have doubled or tripled as rising petrol and diesel prices continue to increase the costs 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 blamed exchange rate volatility and declining agricultural production for the persistent rise in food prices.
He projected that rice production would decline by six percent this year, with the area under cultivation decreasing by seven percent.
He highlighted that fresh pepper has experienced one of the sharpest price increases, with a basket now selling for about N45,000 compared to N15,000 previously.
He added that tatashe has risen by more than 100 percent, while tomatoes increased from N52,000 to N80,000 per basket.
Isong noted that a 50kg bag of local rice increased by about 20.5 percent within one month, from N92,946 to N112,000, while imported rice saw a 21.1 percent increase over the same period.
He also mentioned that onions have become more expensive, with a large bag now selling for between N45,000 and N50,000, up from N35,000.
The OTACCWA president observed that although some food items showed year-on-year declines, month-on-month prices continued to rise.
He cited beans, garri, onions, tomatoes, and eggs as commodities with lower annual prices but gradual monthly 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.
Isong called for sustained investment in transport infrastructure, energy, and agricultural logistics to reduce food costs nationwide.
The National Bureau of Statistics (NBS), in its June Consumer Price Index and Inflation Report, noted that headline inflation eased slightly to 15.91 percent in June from 15.93 percent in May.
However, food inflation rose to 17.52 percent in June from 16.96 percent in May, indicating continued pressure on household food budgets.
The bureau attributed the increase to higher prices of fresh pepper, tomatoes, crayfish, beef, garri, yam tubers, yam flour, cassava flour, cowpea, bananas, and Irish potatoes.
It also stated that food and non-alcoholic beverages remained the largest contributor to headline inflation, accounting for 6.37 percentage points.
