Nigeria Economic Update (Issue 38)

According to the National Bureau of Statistics, the average cost of a healthy diet (CoHD) for August 2024 was N1,255 per adult per day, a 0.8% decrease from N1,265 in the previous month. CoHD is the most costeffective combination of locally accessible commodities that meet worldwide food-based dietary requirements, suggesting that the average Nigerian spends N1,255 per day to maintain a healthy diet. At the regional level, CoHD was highest in the Southwest at N1,554 per adult per day, followed by the South-South at N1,381 per adult per day and the lowest in the Northwest at N1,014. However, the CoHD increased by 28% in August when compared with N982 reported in March this year. The slight decline in CoHD could be attributed to several factors including the decrease in food inflation to 37.52% in August. Nonetheless, more than 31.8 million Nigerians are facing acute food insecurity, which is worsened by malnutrition among women and children. Acute food insecurity worsens poverty, reduces food availability and slows economic activity. The prevailing acute food insecurity is attributed to the high rate of insecurity across the country, particularly in the Northern region of the country. Tackling this requires urgent response from the government. Thus, the government should strengthen security while also providing farmers with agricultural support programs, particularly subsidising the agricultural inputs in order to foster agricultural production and hence, alleviating food insecurity which in turn would reduce the costs of a healthy diet.

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