Lagos, Nigeria – Nigeria’s food inflation rose marginally in June 2025, driven by sharp increases in the prices of essential food items like pepper and tomatoes, even as the country’s overall inflation rate continued its gradual decline for the third consecutive month.
According to the National Bureau of Statistics (NBS), food inflation climbed to 21.97 percent in June, up from 21.14 percent in May. This reflects ongoing pressures on the cost of living for households across the country, where food takes up a significant portion of monthly expenses.
On a month-on-month basis, food inflation increased by 3.25 percent in June, compared to 2.19 percent in May, indicating persistent challenges in food supply chains, seasonal factors, and currency pressures affecting importation and distribution.
Pepper and Tomatoes Lead Price Increases
Market surveys show that fresh tomatoes, pepper, and vegetables saw notable price increases during the month. In Lagos, the price of a basket of tomatoes and pepper surged by over 30 percent due to heavy rainfall affecting harvests in northern states and increased transportation costs driven by high fuel prices.
Folake Adedoyin, a trader at Mile 12 Market, Lagos, explained that transportation costs have made it more expensive to move tomatoes and pepper from the North to the South, directly impacting the retail prices consumers face in local markets.
Headline Inflation Eases for the Third Month
Despite the rise in food prices, Nigeria’s overall inflation rate fell to 22.22 percent in June, down from 22.97 percent in May, according to NBS figures. This decline marks the third consecutive month of easing headline inflation, partly due to the recent rebasing of the Consumer Price Index (CPI), which updated the consumption basket to reflect current spending patterns.
Economic analysts say that while the moderation in headline inflation is a positive sign, food inflation remains a pressing concern as it directly affects household welfare, poverty levels, and food security across the country.
Regional Trends in Food Prices
Across states, markets in Lagos, Kano, Enugu, and Port Harcourt reported rising prices for pepper, tomatoes, and staple grains. In Lagos, a small basket of tomatoes now sells for between ₦12,000 and ₦15,000, up from around ₦8,000 in May. In Kano and Enugu, traders cited heavy rains and transport challenges as reasons for the rising prices, while in Port Harcourt, higher transportation costs have contributed to the increase.
Why Food Prices Are Rising
Several factors are driving the increase in food prices across the country. Seasonal rain patterns have disrupted harvests and logistics, while insecurity in farming communities has limited access to farmlands, reducing output. Additionally, high transportation and fuel costs have increased the expense of moving produce from farms to markets, while currency depreciation has pushed up the cost of imported farming equipment and inputs, affecting food production costs.
Government Measures and Economic Outlook
The Central Bank of Nigeria (CBN) has reiterated its commitment to stabilizing prices through targeted interventions in the agricultural sector and monetary policy tools aimed at curbing inflation. The federal government is also exploring strategies to improve food storage, reduce post-harvest losses, and support transportation infrastructure to ease the cost of moving food items across states.
Economists emphasize the need for investment in irrigation systems to reduce dependence on rain-fed agriculture, development of rural infrastructure to improve market access, and support for smallholder farmers to enhance food production sustainably.
Looking ahead, analysts predict that food inflation may remain elevated in the coming months due to seasonal factors and supply chain challenges. However, if current fiscal and monetary policies are maintained, headline inflation is expected to continue its gradual downward trend, providing some relief to consumers and investors monitoring Nigeria’s economic environment.
Impact on Households
For many Nigerian families, the rising cost of food means making tough choices about spending priorities. With a significant portion of household income going into food, any increase in prices directly affects the ability to meet other essential needs such as healthcare and education, worsening living conditions for low-income earners.
Conclusion
The marginal rise in food inflation in June underscores the urgent need for effective policy interventions to stabilize food prices and strengthen Nigeria’s food security. As the country continues efforts to ease inflationary pressures, addressing the factors driving up food costs will be critical to improving household welfare and reducing poverty in the months ahead.
