Tinubu’s Economic Council Expresses Worry Over Tomato Price Hike From N40,000 To N150,000
Bismark Rewane, a member of President Bola Tinubu’s Economic Coordination Council, expressed concern over the drastic increase in tomato prices in Nigeria, rising from N40,000 to N150,000 per bag within a year. This surge in food prices has significantly impacted the cost of living for citizens, with items like rice, garri, beans, bread, yam, and tomatoes experiencing substantial price hikes. Additionally, non-food items such as transportation, toiletries, and flight fares have also seen significant increases.
Rewane highlighted the negative economic consequences of these price hikes, including a decline in overall economic growth, an increase in headline and food inflation rates, and a sharp depreciation of the local currency against the dollar. He also noted the rise in diesel and petrol prices, contributing to the overall inflationary pressure.
Despite some positive developments such as a slight increase in oil production and improvements in certain economic metrics like external debt per capita and Federal Allocation Committee revenues, there were also concerning trends. These included a significant decrease in gross fixed investment, a decline in national savings as a percentage of GDP, and persisting challenges such as terrorist attacks, power grid collapses, and multinational corporations exiting the country.
Rewane categorized his economic review into three main perspectives: the good, the bad, and the ugly. The good included increases in tax revenue, Federal Allocation Committee earnings, and improvements in oil production and international travel fares. However, the bad encompassed Nigeria’s drop in global and continental economic rankings, along with the rise in inflation and public debt. The ugly highlighted ongoing challenges such as security threats, power instability, corporate exits, and the escalating cost of living crisis driven by food inflation.
In summary, Rewane’s analysis underscores the multifaceted economic challenges facing Nigeria, ranging from inflationary pressures and currency depreciation to security concerns and declining investment. While there have been some positive developments, particularly in revenue generation and certain economic indicators, the overall economic landscape remains precarious, with significant implications for the well-being of the population.
SaharaReporters
