– As the naira continues to appreciate against the dollar, prices of basic food in major markets across the state crashes
– A survey conducted by ZENITHBLOG.com at Ojodu-Berger Retail market, Lagos, shows a reduction in the prices of rice, beans and perishable items and an increment in others
– Despite the naira appreciation, traders informed of a decline in sales
As the naira continues to appreciate against the dollar, prices of basic food items crash in some major markets across the state, ZENITHBLOG.com‘s checks at the Ojodu-Berger retail market, Lagos, confirmed.
The good news came in just days after the vice president Osinbajo promised that the soaring prices of food.
Although the Central Bank of Nigeria (CBN) is unrelenting in its move to ensure more supply of the foreign currencies in the inter-bank market, the prices of other foodstuffs continue to rise.
According to findings by ZENITHBLOG.com, the prices of some staple foods, such as rice, beans, maize, groundnut, were beginning to drop in the market while others like garri and crayfish continues to soar.
File photo of some traders displaying their products in one of the markets visited recently. Photo: Esther Odili
In the market, prices of food items are dropping following the arrival of new harvests, as a bag of rice now sells for N17,500 and below as against previous price of N19,000 and above.
A survey carried out by our correspondent revealed that prices of some grains have drastically reduced but rice, still in high demand, remains costly but with slight drop in price.
Some consumers who spoke with ZENITHBLOG.com expressed optimism that the prices of food items would crash further before the month ends.
“The current economic hardship would end when there is massive food production. He said that when people don’t produce but consume more, there is bound to be food shortage and the economy will become weak,” Emeka, a consumer who was in the market in the market to buy some items, told our correspondent.
A trader identified as Augustine informed that there has been a reduction in the prices of foodstuffs and an increment in the price of crayfish and dried pepper.
He said: “Just recently, there has been a reduction in the price of basic foodstuffs especially egusi. In previous weeks, a bag of egusi (handpeel) that cost N65,000 before, now cost N50,000. The prices of these items are influenced by the exchange rates, as they are imported in the country. We have different types of egusi, the big, small and the ordinary one same goes for ogbono and dried pepper. Also the prices are influenced by the size of the bag, market location, content of the bag and measurement.
“For ogbono, there is no fixed price of ogbono as the price fluctuates lately. A bag of ogbono that cost N95,000 last week, have risen by five percent this week. A bag now goes for N100,000. A bag of dry pepper can be purchased at N55,000 now while a big nylon of crayfish sells for N32,000 as against its old price of N26,000 and N28,000.”
File photo of a young lady hawking fish on the streets of Lagos.
Similarly, there was a reduction in the price of rice and beans as observed in the market. A bag of rice that was sold for N19,000 and N17,500, now sells from 16,500- N17,500. And a bag of beans that cost N34,000 now costs between N28,000 and N32,000.
Traders believe this reduction is as result of the availability of similar food items by various brands that are competitive with the existing ones.
A rice dealer in the market simply identified as Nnamdi, explained thus: “There are different types of rice now and they are affordable and of good quality due to the recent appreciation of the Naira against the dollar. A huge problem faced by traders is purchase which is determined by the distributors and the economy condition of the country.
“As sometimes the ones bought from neighbouring countries are expensive transporting it here. Another factor is the closure of the border. Traders sell according to the amount they purchase the goods.”
Meanwhile, the scarcity of foreign exchange (forex) is taking its toll as the prices of some imported goods in the country were inflated in recent times.
In the same vein, there has been a little increment in the price of garri, especially white garri. According to traders, garri became expensive due economic condition of the country, despite the dollar fall.
In the market, a bag of white garri costs N15,000 while a bag of yellow garri is not sold for less than N13,000.
The rise of the dollar and other foreign currencies against the naira before now, has virtually affected the prices of electronics, stationery, clothes, building materials, food (like sugar, rice vegetable and palm oil) among others. The exchange rate is believed to be a major factor that influenced the prices of goods in the market.
Further checks by Zenithblog.com Lagos showed the hike in price of some foodstuffs and provisional items; resulting to poor sales and a reduction in the purchasing power of buyers.
Hausa traders with their tubers of yam and onions in large quantities. Photo: Wuraola Zainab.
Prices of provisions like dairy milk, detergent, noodles, beverages, laundry soaps and cereals that increased by 30 per cent in previous months, remain the same as observed in the market.
Mrs Uzor, a trader who spoke with our correspondent, said the prices of various commodities in the market have risen as a result of many factors like rise in price of fuel, exchange rate, and that these have led to availability and non- availability of most local produce and market factors.
According to her: “Traders are aware of the fact that prices of various foods items usually witness an increment in its prices whenever there is an imbalance in the economy but this period is worse. The rise in the price of provisional items like beverages, noodles, detergent and more is alarming, as it increases daily.
“A dozen of Dano milk that cost N180 before has increased to N270, while toothpaste that goes for N200, increased between N250- N300. A carton of noodles that cost N2,000 now cost N2,300; depending on the type, brand, size. While a carton of spaghetti now sells from N3,500 as against its old Price N2,600. Same goes for detergents and biscuits, as well as drinks. The increase in the prices these items have led to drop in sales because most buyers who patronize us end up buying in quantity rather than quality.”
Prices of some goods, as gathered by our reporter, have increased as high as 15 per cent in some instances and some traders have been grappling with rising prices of commodities including food stuffs, electronic gadgets and clothes.
A bag of sugar that cost N9,000 before, has increased to N18,000 upwards while a 25-litre gallon of vegetable oil that cost N14,000 last week, has gone up to N15,500 while the same quantity of palm-oil that was N16,000 has reduced to N14,000 as observed in the market.
The survey further revealed that price of tomatoes, pepper and chili pepper crashed by over 10 per cent.
It showed that a big basket of tomatoes which was sold for N9, 000 now sells for N6,000. Also, a medium-sized basket of fresh pepper now sells for N9, 000 from N13, 000, while a basket of chili pepper goes for N8, 000 from N7,000. Surprisingly, the prices of onions have crashed due to excess in supply.
A trader who sells in the market, Mallam Hamisu, explained that onion has been available in the market and affordable.
“For some weeks now, the prices of perishable goods have been relatively cheap and this is due to excess in supply. A bag of onion that goes for N25, 000 now ranges from N15,000-N18,000. But old onion is scarce and expensive, and a bag that cost N28,000 before, can be purchased at N25,000.
Chinedu, a phone retailer in the market, told our reporter that since the crash of naira against the dollar at the parallel market, some distributors stopped supplying the phone which shot the price up in the market.
Prices of tomatoes have also dropped in the market according to ZENITHBLOG.com’s survey. Photo: Esther Odili.
Our correspondent reports that as the value of the naira crashes, business people are also readjusting values of their wares so as not to incur losses while consumers groan over the increase.
A dealer in imported clothes, Olisa, explained that he had to constantly adjust the prices of his wares because if the prices remained fixed, the losses he would incur could cripple the business.
He said: “A brand new shirt for men which previously sold at N1,500 is now sold between N1,700 to N2,000 while a Jean trouser for men, rose from N2,500 to N3,000 or N3,500. While that of ladies, a pant trouser goes for N2,500 upwards; Depending on the brand and the size. Same goes for shoes and bags. As a quality bags goes from N5,000 upwards. But cheaper and affordable ones can be purchased at local stores.
“All these were due to the exchange rate. The implication is that the purchasing power the consumer will be reduced. The government should come up with both strong monetary and fiscal policies that will encourage local production, cheap capital and reduced unnecessary imports. It has never been this bad in Nigeria. Families can no longer afford three square meals in a day. Everybody is really lamenting these hard times.”
Staple foods such as rice, beans, cassava flakes are now slipping out of the hands of average Nigerians.
Although the prices of the food items in some of the markets differ, the difference is just minimal. For instance, the price of rice, beans, cassava flakes, palm oil, groundnut oil, and pepper in Ojodu-Berger retail market is different from the price in Ikorodu, Ogba, Iyana-Ipaja market, among others.
According to traders at the market, there is no fixed price for the foodstuffs, people just sell according to what they buy and that is why the prices are not the same.
A trader, who pleaded anonymity, lamented that the level of patronage in the market have reduced due to the high price of foodstuff adding that, this has inflicted more hardship on them.
“People are suffering and the appreciation of the Naira has not reflected in the prices of some goods lately.We do not make sales as usual in previous years. Government should please pity the traders who have no other source of livelihood for survival.”
Another trader said that majority of traders are facing financial crisis because most of them end up borrowing money to run their businesses but they are not getting returns on their because of low patronage.
Below is our weekly table of changes in price of goods before and now:
Table showing the changes in prices of food items before and now. Source: Esther Odili.
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