A member of the Presidential Economic Coordination Council, Bismark Rewane, has raised the alarm over the skyrocketing cost of tomatoes in Nigeria.
Within a year, the price of tomatoes increased from ₦40,000 to ₦150,000 per basket.
Rewane, who is also the Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, made the statement on Wednesday while presenting economic scorecards and metrics to mark President Bola Tinubu’s one-year anniversary in office.
“How does this affect you? In Inie and Jeffrey, a bag of rice cost ₦35,000 last year; today, it’s ₦80,000, an increase of 129 per cent. Garri was ₦28,000 last year; it’s now ₦50,000. Beans were ₦30,000 last year; now it’s ₦95,000, up by 217 per cent. A loaf of bread was 900; now it’s ₦1,600. A tuber of yam was N2,000; now it’s ₦10,500. The big problem is tomatoes: last year, ₦40,000 per bag; now it’s ₦150,000,” Rewane said.
“Non-food basket items: A night bus from Lagos to Abuja was ₦20,000 last year; now it’s ₦33,000, up 68 per cent. Toiletries were ₦300; now it’s ₦500, up 67 per cent. A flight from Lagos to Abuja was N38,000; now it’s ₦80,000, up 111 per cent. Lagos to London flights dropped from ₦2.6 million to ₦1.4 million.”
According to Rewane, rising headline inflation, particularly in food prices, has exacerbated food prices across the country.
“Before, we were growing at 2.91 per cent. This year, we are now growing at 2.87 per cent, so our growth has declined by 0.04 per cent. Headline inflation was 22.41 per cent when President Tinubu took office. It is now 33.69 per cent, so it has deteriorated by 11.28 per cent.
“Food inflation was 24.82 per cent; it is now 40.53 per cent. It has deteriorated by 15.71 per cent. The exchange rate on May 29 last year was ₦765 to a dollar in the parallel market. Today, it’s at ₦1,520, essentially doubling and declining by 100 per cent. The difference between the parallel and official market rates was N295 to a dollar last year; today, it’s ₦346 due to recent adjustments.
“The price of diesel was ₦840 per litre last year; today, it’s ₦1,200, although it had reached ₦1,700 before Dangote brought it down to ₦1,200, an increase of 43 per cent. Petrol (PMS) was ₦190 per litre, highly subsidised; today, it’s ₦580 in most parts of the country, even ₦617, increasing by 205 per cent. Efforts were commendable, but outcomes were average,” he noted.
Rewane noted that one of the positive developments during the period was the marginal increase of 11 per cent recorded in oil production.
He said, “We were producing 1.15 million barrels per day last year. Now, it’s 1.28 million barrels, a marginal increase of about 11 per cent. The total Federal Allocation Committee shared ₦10.92 trillion last year, which has increased to ₦14.39 trillion due to subsidy removal and reduction, a 31.78 per cent increase.
“Total external debt was $42.7 billion last year; today, it is $42.5 billion, a slight improvement. External debt per head was $179 per Nigerian last year; now it’s $178 per head. Gross external reserves were $35 billion last year, dropping by 7 per cent to $32 billion. The minimum wage was N30,000 per month last year, and it’s now open to debate.”
Speaking on the economic impact and unintended consequences, Rewane said, “The gross fixed investment, which drives growth, was $154 billion last year; it is now down to $105 billion, a 31 per cent decrease. Stock market capitalization was N30 trillion last year, now it is N55 trillion, an 83 per cent increase, benefiting investors.
“National savings as a percentage of GDP decreased from 33 per cent to 29 per cent. Life expectancy improved from 55.8 years to 56.1 years. Ships waiting at Nigerian ports increased from 12 to 15, a 25 per cent improvement. Grid collapses reduced from 12 times last year to five times this year.”
He also divided his economic reviews into three broad categories, saying, “So, we have the good, the bad, and the ugly.” The good: Tax and other revenues have more than doubled; FAAC increased to ₦14.39 trillion; Dangote Refinery and other modular refineries commenced operations; Forex backlog cleared by over half; credit rating upgraded to B; oil production increased to 1.34 million barrels per day; and international fares reduced.
“The bad: Nigeria fell from the 32nd largest economy in the world to 42nd; in Africa, from 1st to 4th; inflation increased from 24% to 33%; public debt rose to N97 trillion.
“The ugly: terrorist attacks continue; power grid collapses persist; multinationals like Procter & Gamble exit; the cost of living crisis persists; food inflation is rising, driven by post-harvest losses, insecurity, and poor storage.”
