Nigerians are struggling to afford basic food as soaring transport costs continue to push up food prices and squeeze household incomes.
With petrol prices nearly quintupled in just 22 months, transport fares have surged by 20 to 100 percent, significantly increasing the logistics costs for food traders. These costs are then passed on to consumers, leaving many families unable to afford three square meals a day.
SBM Intelligence reports that transportation costs in Nigeria have risen dramatically over the past seven years. Interstate bus fares have increased by 403.5 percent, while airfares have jumped by an average of 280.7 percent. Water transport fares have also risen by 148.8 percent in the same period.
For low-income Nigerians, the impact is particularly severe. Small businesses and traders who rely on transportation for goods distribution are facing higher operational costs, which translate into rising prices for consumers.
The rising transport costs are making it harder for families to make ends meet,” SBM Intelligence noted.
In an interview, a food vendor and businesswoman at the bustling Ketu market in Lagos, shared her frustrations. “As a food vendor with four children, I can barely provide three square meals for my family, let alone meet the needs of my customers,” she lamented.
Olaoye, who runs a small canteen in a one-room shop, explained that the cost of preparing meals has doubled since the start of 2024 due to the soaring prices of staple foods like rice and beans.
It now costs over N40,000 to prepare a pot of stew or vegetable soup for just over 100 customers,” she said, adding that her customers’ dwindling purchasing power makes it even harder to make ends meet.
The rising fuel prices have also impacted the transportation of food items like rice, yams, groundnut oil, and cassava flour, which are brought in from other states. Petrol prices, which hover between N800 to N900 per litre, are expected to rise to N930 per litre, further straining vendors like Olaoye.
The hike in fuel prices, driven by the petrol market liberalization, has compounded the financial struggles of Nigerians and deepened poverty. According to the National Bureau of Statistics (NBS), 133 million Nigerians are now classified as multi-dimensionally poor.
Akintewe Funmilayo, a youth living in Lagos, highlighted the challenges faced by families in managing food costs. “As the eldest daughter in my family, I cook for six of us. Even with proper planning, it costs at least N15,000 to prepare a decent pot of soup, she said.
Funmilayo also mentioned the growing cost of eating out, with a single spoon of rice or beans at a local canteen now priced at N400 each.
According to NBS data, food inflation stands at 23.51 percent, a significant decrease from 39.84 percent in December 2024, though still high due to the rebased consumer price index (CPI) in January 2025. Nonetheless, staple food prices have more than doubled for many Nigerians in the past year, SBM Intelligence analysis noted.
Samson G. Simon, Chief Economist at ARKK Economics and Data Limited, spoke about the challenges in affording healthy diets, even for those who are employed.
Despite having jobs, many Nigerians struggle to afford a balanced diet due to shrinking disposable incomes,” Simon explained.
The Nigerian Financial Services Market Report revealed that only 2.4 percent of Nigerians earn over N200,000 per month, with 3.7 percent earning between N150,000 and N200,000. About 8.3 percent earn between N100,000 and N150,000, and 19.3 percent earn between N50,000 and N100,000.
Meanwhile, around 27.8 percent of Nigerians earn below N35,000, and 17.1 percent are unemployed.
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The report also found that three out of ten workers in Nigeria spend more than 20 percent of their salary on transportation, further compounding the financial pressures on the population.
