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Research Analysis

Household Survey: Nigerians dump imported rice, others, as prices jump high 

Latest reports have shown that Nigerians are now patronizing Made-in-Nigeria rice and other locally produced food items.

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price of rice, Scarcity of imported rice hits major markets, as dealers pack local rice in foreign bags 

After weeks of sustained border closure, latest reports have shown that Nigerians are now patronizing Made-in-Nigeria rice and other locally produced food items instead of the imported ones.

Also, the latest Household Survey carried out by Nairametrics Research team shows a massive increase in prices of major imported household items across Lagos markets. It was learnt that while the price of local rice rose due to increased demand, there was a big jump in the prices of imported rice.

For instance, Items such as locally made rice increased by 13% from an average of N16,000 to N19,000, while foreign-made rice recorded a huge 35% increase in price, from a previous average of N18,875 to N25,500.

Also, a bag of brown beans (50kg) which sold earlier for an average of N13,500 now sells for N17,250, indicating a 28% increase in price.

This report reflects items that increased in price, those items that decreased in price, special markets and general insights.

[READ MORE: Household Survey: Traders exploit border closure to raise food prices]

Items that witnessed price increase

The price of locally made (50kg) rice increased from an average N16,000 to N18,000, indicating a 13% increase in price.

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  • According to reports, foreign rice is scarce in the market, due to the partial border closure imposed by the Federal government. Foreign rice is now sold for an average of N25,500, indicating a significant 35% increase.
  • Also, a bag of white beans increased by 2% from N20,500 to N21,000, while a bag of brown beans (50kg) increased by 28% to now sell for an average of N17,250.
  • A bag of 50kg yellow garri now sells for an average of N5,250, representing 8% increase in price.

Items with reduction in prices

According to the latest prices obtained at the market, a bag of 50kg beans (Oloyin) reduced by 1% from an average of N13,875 to N13,750.

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  • Also, a 50kg bag of white Garri reduced by 13% from and an average of N5,900 to N5,125.
  • Locally made palm oil also reduced in price. 5 litres of locally made palm oil now sells for an average N1,850, compared to the previous N2,000 two weeks ago. A 25-litre gallon of locally made palm oil that was sold for N10,700 two weeks ago now sells for an average of N9,500.
  • A 5 litre gallon of locally made groundnut oil reduced by 15% from a previous N2,325 to N1,975, while a 25-litre gallon also reduced by 3% from an initial average of N10,875 to an average of N10,500.
  • Lastly, a big basket of round shaped tomatoes now sells for N8,000 from an earlier N14,000, representing a 43% decrease in price, while a big basket of oval-shaped tomatoes reduced by 22% from an initial N9,000 to N7,000.

 Special Items/markets 

  • The sellers of tomatoes at Mile 12 market enlightened Nairametrics research team that the red round shaped tomatoes are imported from Ghana and are popularly referred to as Ghana tomatoes, while the oval shaped tomatoes are grown and harvested in the Northern part of Nigeria.
  • It was also discovered that the price of onions increased at Mile 12 market, as a big bag of dry onions now sells for N18,000, compared to the former N16,000 reported two weeks ago.
  • Meanwhile, a big bag of new onions sells for N13,000 from the previous N11,000. According to information obtained, the increase was attributed to the limited quantity of onions available in the market (North), as there is high demand for the commodity across the country.

Market Insights

The Nairametrics Research Team interviewed traders of various commodities across the various markets and recorded reactions with respect to the current market situation.

  • Sellers of rice across the major markets disclosed their dissatisfaction towards the persistent rise in prices of foreign and locally made rice due to border closure and high demand of locally made rice.

A rice seller called John disclosed that he had just one bag of foreign rice remaining in his store and he planned to keep it until it would be worth as much as N30,000 in the market, which is likely to happen soon, according to him.

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  • However, John called on the government to help boost the local production of rice in the country so as to meet the high demand for the commodity.
  • A seller of frozen foods disclosed to Nairametrics research that she has stopped selling because most consumers have opted for the purchase of live chickens in place of the regular frozen chickens and turkeys.

[READ ALSO: Household Survey: Prices of Tomatoes, yam and others drop as palm oil inches up…]

About Nairametrics Food Price Survey

The Nairametrics Food Price Watch is a bi-weekly household market survey that covers prices of major food items, with emphasis on four major markets in Lagos – Mushin Market, Daleko Market, Oyingbo Market and Mile 12.

 

ItemsBrandUnitMUSHIN (26/09/2019)DALEKO (26/09/2019)OYINGBO (26/09/2019)MILE 12 (26/09/2019)Average MUSHIN (13/09/2019)DALEKO (13/09/2019)OYINGBO (13/09/2019)MILE 12 (13/09/2019)Average
Bag of RiceBasmati5kg6500600065006500637565006000650065006375
Bag of RiceMama Gold10kg000040003500400037003800
Bag of RiceRoyal Stallion50Kg26000250002600025000255001950018000195001850018875
Bag of RiceRice Master10kg0000035003500350035003500
Bag of RiceMama Gold50kg18000170001800017000175001600015500160001550015750
Bag of RiceCaprice50kg26000250002600025000255001950018000195001850018875
Bag of RiceMama's Pride50kg19000170001850017500180001650015500160001600016000
Bag of RiceFalcon25kg0000068006500680068006725
Bag of BeansOloyin50kg14000135001400013500137501400013500140001400013875
Bag of BeansWhite50kg22000200002200020000210002200020000220001800020500
Bag of BeansBrown50kg18000165001750017000172501400012000145001350013500
Tuber of YamAbuja1 Big Size Tuber700700700650687.5700700700650687.5
Tuber of YamAbuja1 Medium Size Tuber500550600500537.5500550600500537.5
Carton of NoodlesIndomie305g (Belle full)2900290029002900290029002900290029002900
Carton of NoodlesIndomie200g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2000220021002100210020002200210021002100
Carton of NoodlesMinimie70g1500150015001500150015001500150015001500
Carton of NoodlesGolden Penny70g1400140014001400140014001400140014001400
Bag of GarriIjebu80kg7000680070007000695070006800700070006950
Bag of GarriWhite50kg5500500055004500512558006000600058005900
Bag of GarriYellow50kg5000500055005500525047004700500050004850
Basket of PotatoSweetBig Basket5000500050005000
Basket of PotatoSweetSmall Basket700700700700
Basket of PotatosweetSmallest Basket200200200200
Basket of PotatoIrishBiggest Basket20000200002000020000
Basket of PotatoIrishMedium Basket2000200020002000
Basket of PotatoIrishSmall Basket1500150015001500
Packet of PastaGolden Penny500g3300340034003400337533003400340034003375
Packet of PastaDangote500g3500350034003400345035003500340034003450
Packet of PastaPower (1 pc)500g180200180200190180200180200190
Packet of PastaBonita (1 pc)500g200200200200200200200200200200
Gallon of Palm OilLocal5 Litres2000170020001700185020002000200020002000
Gallon of Palm OilLocal25 Litres1050090009500900095001100010500108001050010700
Gallon of Vegetable OilLocal5 Litres2000190020002000197524002200240023002325
Gallon of Vegetable OilLocal25 Litres120009500110009500105001100010500110001100010875
Gallon of Vegetable OilKings5 Litres3000300030003000300030003000300030003000
Gallon of Vegetable OilWesson5 Litres3900390039003900390039003900390039003900
Gallon of Vegetable OilMamador3.8 Litres25002450250024002462.525002450250024002462.5
Gallon of Vegetable OilPower3 Litres1800180018001800180018001800180018001800
Bunch of PlaintainPlaintain1 Big Bunch400400350400387.5400400350400387.5
Bag of FlourDangote50kg10800105001100011000108251080010500110001100010825
Bag of FlourHoney well50Kg11500110001120011000111751150011000112001100011175
Bag of FlourMama Gold50kg11500113001100011000112001150011300110001100011200
Bag of SugarDangote50kg3500320034003200332535003200340032003325
MilkPeak Powdered (Tin)400g12501200120012001212.512501200120012001212.5
Milkpeak Powdered(Tin)900g2400240024002300237524002400240023002375
MilkPeak milk (Refill)500g10501000100010001012.510501000100010001012.5
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2000200020002000200020002000200020002000
MilkDano (Refill)500g850800800800812.5850800800800812.5
MilkThreeCrown (Refill)380g720700750700717.5720700750700717.5
MilkLoya Powdered (Tin)400g10001000100010501012.510001000100010501012.5
MilkLoya (Refill)400g850800850800825850800850800825
MilkCoast (Refill)500g750750750750750750750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2000210021002100207520002100210021002075
Cocoa BeveragesMilo Refill500g900900900900900900900900900900
Cocoa BeveragesBournvita Refill500g950900950900925950900950900925
Cocoa BeveragesBournvita (Plastic)900g2000200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g800800850850825800800850850825
Cocoa BeveragesOvaltine(Plastic)500g1100110010001100107511001100100011001075
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g310290300300300310290300300300
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g400380400450407.5400380400450407.5
SugarGolden Penny Sugar (cube)500g350300350300325350300350300325
BreadVal-U1 loaf300300300300300300300300300300
BreadButterfield1 loaf300300300300300300300300300300
EggN/ACrate10009001000950962.510009001000950962.5
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre600550550600575600550550600575
JuiceChivita1 litre600550600550575600550600550575
GasRefilling12.5kg4000380040003800390040003800400038003900
GasRefilling5kg1500160015001500152515001600150015001525
TomatoesBig Basketround shaped800080001400014000
Medium Basketround shaped6500650080008000
Small Basketround shaped5000500060006000
Big BasketOval Shaped7000700090009000
Small BasketOval Shaped4500450040004000
FishKote (Horse Mackerel)1 kg450450500420455450450500420455
FishTitus (Mackerel)1 kg450400450450437.5450400450450437.5

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Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

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Business News

Cost of preparing jollof rice in Nigeria rises by 7.8% in Q1 2021 – SBM

The average cost of making a pot of jollof rice in Nigeria rose by 7.8% between March 2020 and March 2021.

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SBM Jollof Index

The average cost of making a pot of jollof rice in Nigeria rose by 7.8% between March 2020 and March 2021. This is contained in the SBM Jollof index report for Q1 2021, published by SB Morgen.

According to the report, the increase was caused by the prolonged border closure, increased energy tariffs, exchange rate volatility, coronavirus pandemic, and the restrictions of forex for the importation of items, largely due to falling oil prices.

It also identified the effect of the #EndSARS protest against brutality and the response of the government, which brought the main economic states in Nigeria (Lagos and Abuja) to a standstill for major parts of the month of October 2020.

Highlights

  • Specifically, the average cost of making a pot of jollof rice in Nigeria increased from N7,167 recorded in Q4 2020 to N7400 in the first quarter of 2021. representing a 3.24% quarter-on-quarter increase.
  • The cost of making a pot of rice is most costly in Wuse and least costly at Awka. The report, however, suggests that the disparity could be a result of operational costs rather than the actual cost of commodities.
  • While it is possible for people in Awka to substitute buying some of the commodities with products from their subsistence agriculture, the same is not possible in Wuse, largely because of its very urban nature.
  • The high exchange rate of N410/$1 to N475/$1 in the parallel market also adversely affected the price of jollof rice in the country as tomato puree, rice, turkey, and seasoning are affected by the exchange rates.
  • Also, flooding destroyed several hectares of rice farms across the country. The report stated that up to 500,000 hectares of rice farms were destroyed in Kebbi State alone.
  • The price of turkey has increased as a result of increased electricity tariffs which has forced increases in cold room costs.

According to the SBM Jollof report, “Our interviews with traders shows that transportation costs have not reduced since they were increased during the introduction of the COVID-19 protocols. One of the traders stated that she pays almost twice her former transportation cost prior to COVID-19, and the prices have not gone down even after drivers began to carry more passengers than permitted by the social distancing protocol.”

Jollof costliest to cook in Wuse, Abuja

In Abuja, food production is mainly undertaken by its neighbouring states Benue, Kaduna, Kogi and Niger, all of which have seen several attacks in the past few years, showing a decline in that dimension.

  • The report revealed that the cost of making a pot of jollof rice is highest in Wuse, Abuja.
  • Although food distribution has not been affected and unemployment rates are over 40%, but being the administrative headquarters of the government and most international NGOs, outreaches and food distribution are common.

“In all the states surveyed, out of a score of 50, the combined score ranged from 18-27 which shows a general decline in entitlements across the states and similar levels of severity. While Bauchi has a higher chance at getting food insecure, the other states are slightly above the borderline, showing medium decline in their entitlement (ability to get food).”

What you should know

According to the report, in all the markets surveyed, the cost of making a pot of jollof rice increased in Awka, Calabar Municipal Market, Mbakpa, Onitsha, Port Harcourt and Trade Fair, while Balogun, Bauchi, Bodija, Dugbe, Kano, Nyanya and Wuse experienced a slight decrease.

  • The South-South and South-East states experienced an increase in the cost of making Jollof rice, Northern states experienced a price reduction.
  • The price decrease was attributed to the harvest period which usually forces prices of some commodities like onions and tomatoes down.
  • It however suggested that this decrease may have failed to happen in the Southern part of the country because of the cost of transporting the goods down south and because of the price surge introduced by the food blockade.

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Business News

Mobile & USSD transactions surge by 82.6% as Covid-19 spurs mobile adoption

Mobile transactions in Nigeria (mobile & USSD) surged by 82.6% in 2020 to stand at 1.69 billion, as covid-19 discourages physical banking.

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Mobile transactions in Nigeria (mobile & USSD) surged by 82.6% in 2020 to stand at 1.69 billion compared to 928.86 million recorded in the previous year. This is according to the 2020 instant payment annual statistics, recently released by the Nigerian Inter-Bank Settlement System (NIBSS).

The report also revealed that 78% of total instant payments carried out in Nigeria in 2020 were done through the use of mobile devices.

The breakdown of the data showed that while mobile payment retained its position as the most preferred channel, accounting for 43% of the total transactions in 2020, USSD followed closely at 762.19 million transactions, accounting for 35% of the total recorded in the year.

READ: USSD service suspension: FG wades in, resolving issues between MTN and banks

The agency attributed the growth to the move by Nigerians away from physical channels, and the closure of most bank branches in the country during the heat of the covid-19 pandemic.

In terms of Year-on-Year performance, the volume of mobile transactions in the country grew from 506.16 million in 2019 to 933.66 million in 2020, indicating a surge of about 84.5% YoY. Also, the volume of USSD transactions grew from 422.7 million to 762.19 million, advancing by about 80.3% YoY.

READ: Amid sell-off, FUGAZ investors lose N34.68 billion in a single trading session

Key highlights

  • The report stated that with approximately 49.5% smartphone ownership in the country and 97 million mobile internet users, there are strong indications that mobile and USSD payments will see significant growth in the short-medium term.
  • Customers between the ages of 25 – 34 years carried out 36% of all interbank instant payments in 2020. This indicates that the younger demographics boosted the adoption of instant payment in the review period.
  • Also, 79% of instant payment transactions in the review year were initiated by customers between the age of 15 – 44 years.
  • A cursory look at the report also shows that Lagos state maintained the hub for electronic payments, accounting for 30% of the total transactions initiated in the country. Others on the list of highest transaction volumes include; Abuja (7%), Ogun (6%), Rivers (6%), and Oyo state (5%).
  • According to the report, 1.37 billion transactions initiated in the year were carried by males, representing 72% of the total, while 520.04 million or 28% were females.

READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says

Nairametrics had reported that twelve Nigerian banks listed on the NSE, raked a sum of N216.52 billion from their e-business earnings in 2020. A list that is clearly topped by the tier-1 banks in the country. This shows how banks are leveraging the growing internet adoption in the country.

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A look at bank financials

  • Union Bank in its FY 2020 Investors’ presentation stated that the pandemic played a vital role in its 38% YoY growth in Union Mobile active users. It stated that 94% of its transactions are now done online.
  • In the same vein, Access Bank remarked that its USSD users at the end of FY 2020 increased to 7.8 million, while the mobile app and internet banking users were 9.8 million at the end of 2020.
  • GT Bank on the other hand noted that its USSD users grew by 13.1% YoY, from 6.1 million as of December 2019 to 6.9 million in 2020. Of this figure, 5.7 million users were categorized into the active segment.

Bottom line

As witnessed from the increase in the volume of transactions, the covid-19 pandemic has changed the electronic payment landscape in Nigeria and the world as people try to cut the excesses of physically visiting banks to carry out their financial transactions. This was due to the lockdown implemented by the federal government in response to the covid-19 spread.

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