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Research Analysis

Explained: CBN’s powers to seize bank account of criminals

The CBN expects the powers to be given to it via an amendment of the BOFIA.

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P&ID dispute: UK Court orders $200 million guarantee to FG, Leaked letter by Poultry Farmers Association triggered CBN emergency approval to import maize, nImplications of CBN's latest devaluation and FX unification, current account deficit, IMF, COVID-19, CBN OMO ban could give stocks a much-needed boost , CBN’s N132.56 billion T-bills auction records oversubscription by 327% , Nigeria pays $1.09 billion to service external debt in 9 months , Implications of the new CBN stance on treasury bill sale to individuals, Digital technology and blockchain altering conventional banking models - Emefiele  , Increasing food prices might erase chances of CBN cutting interest rate   , Customer complaint against excess/unauthorized charges hits 1, 612 - CBN , CBN moves to reduce cassava derivatives import worth $600 million  , Invest in infrastructural development - CBN Governor admonishes investors , Credit to government declines, as Credit to private sector hits N25.8 trillion, CBN sets N10 billion minimum capital for Mortgage firms, CBN sets N10 billion minimum capital for Mortgage firms , Why you should be worried about the latest drop in external reserves, CBN, Alert: CBN issues N847.4 billion treasury bills for Q1 2020 , PMI: Nigeria’s manufacturing sector gains momentum in November, CBN warns high foreign credits could collapse Nigeria’s economy, predicts high poverty, MPC Member, BVN, Fitch, Foreign excchange (Forex), Overnight rates crash after CBN’s N1.4 trillion deduction, Nigeria’s foreign reserves hit $36.57 billion; Emefiele keeps his word on defending the naira, CBN to support maize farmers, projects 12.5 million metric tons in 18 months, BREAKING: CBN Upscales Greenwich Trust Limited, grants it's operational license for merchant banking, AGSMEIS: CBN expand beneficiaries to 14,638.

Reports across major news outlets in Nigeria reveal the central bank is seeking sweeping powers to freeze bank accounts “linked to criminals” in the country. It expects the powers to be given to it via an amendment of the Bank and Other Financial Institutions Act (BOFIA) of 2004.  

Powers to freeze accounts; The CBN’s Director Legal Services, Mr Kofo Salam-Alada, who made the representations at the National Assembly requested for the following;  

  • “The CBN should be able to apply to the court for orders to freeze accounts which are deemed to be linked with criminal and other civil infractions.” 
  • Apparently, the bill has passed through First and Second Readings but omitted the provisions they are seeking to include now. 

What this means: The CBN is increasingly seeing itself as not just an enforcer of monetary policy but a major stakeholder in curbing the activities of fraudsters looking to exploit the financial banking system. Thus, the CBN needs not wait for anti-corruption bodies like the EFCC to seek court orders to freeze bank accounts that they suspect of being used for fraudulent activities.  

For example, a bank account that receives a huge inflow that’s far above its average deposits over a period can be flagged by the bank coming under the radar of the CBN. This could give it major oversight over the parallel market demand for forex.  

Dormant Accounts: The CBN is also calling for a provision that will allow it to change the administration of dormant accounts in the banking sector. 

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  • “We propose the inclusion of provisions to improve the administration of dormant accounts in the Nigerian banking sector.”  
  • “The provisions should address such requirements as the criteria for determining dormancy, the processes for managing the funds in dormant accounts and procedure for reclaiming funds by beneficiaries.” 

What this means: It appears the CBN wants to have a more direct control over how dormant accounts are managed by banks in Nigeria. It is thought that some of the older generation banks keep tens of billions of naira in dormant account deposits that may not be reclaimed in the foreseeable future. 

Distressed Banks: The CBN also wants an amendment to the law to give it options to managing systemic crises and failed banks without seeking funding from taxpayers. 

What they are saying; 

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  • “The Central Bank of Nigeria does the former (managing failed banks and bringing them back to good financial health) as provided in the BOFIA while NDIC is saddled with the latter (taking over liquidated banks and protecting depositors money) under the NDIC Act. The global best practice is to have the banking legislation empower the Financial services industry regulator to regulate banks, promote their soundness and stability superintend issuance and revocation of operating licence without recourse to any other institution; while the Deposit insurer is in charge of bank resolution activities after the revocation of the operating licence,”  
  • “There is a need to expand the options available to the CBN to resolve failing banks and manage the systemic crisis without recourse to the public treasury. In line with international best practices, we recommend the establishment of a resolution fund to pool resources for managing banking sector distress.”  
  • “We also recommend the adoption of additional resolution tools such as bail-in (ensuring that losses are absorbed by shareholders and creditors), sale of the business (allowing the resolution authority to sell all or part of the failing bank to a private acquirer) and asset separation (isolating the “bad” assets of the bank in an asset management vehicle for an orderly wind-down, if immediate liquidation is not justified in current market conditions). 

What this means: The CBN currently relies on taxpayers funds to bail out banks a policy that has been critisized in the last few years. Currently, failed banks are liquidated by the NDIC but this process means depositors still have to lose billions of naira of their deposits.

Nigerian banks also contribute a percentage of their total assets to AMCON sinking fund, which is also part of what is used to purchase eligible banking assets that are non-performing.

This bill, however, looks like they want to include an option that will allow the CBN to use the assets of the bank or its owners to “bail in” the banks rather than a bail out and also remove the bad loans from the balance sheet of the banks allowing it operate as though it is clean.  

New Regulatory Powers: The CBN is also looking at amending its bill to give it more powers and oversight to regulate new wave of financial services firms that have emerged in recent times.

What they are saying; 

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  • “Several new types of licenced institutions have entered the Nigerian Financial Services sector since the enactment of the 1991 Act. These include the non-interest banks, credit bureaux, payment system service providers, among others.”  
  • ‘There is a compelling need to introduce new provisions in the Bill to address the unique peculiarities of these institutions.” 

The National Assembly is also looking to approve the use of digital signatures through the introduction of the Electronic Transactions Bill. This will allow electronic communication to be accepted in the place of physical appearances and give validity to online contracts. 
 

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Research Analysis

Market Survey: Price of tomatoes, maize, and melon spikes, as scarcity hits Lagos markets

The report contains information on items that witnessed price increase, price decrease, as well as insights.

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Market survey, FSDH Merchant Bank Ltd, Inflation rate, private sector loans, NBS

Prices of major household food items have increased significantly across major markets in Lagos State, as a result of low harvest and scarcity. This is according to the latest Household Market Survey conducted by Nairalytics – the research arm of Nairametrics.

The persistent rise in the price of food items has been enabled by dwindling harvest, which has caused scarcity of commodities across major markets in Lagos State. Some of the items that surged as a result of the scarcity include tomatoes, melon and maize.

READ: Prices of frozen Fish, Yam, Pepper, others jump as traders lament low sales in major markets

The report shows that a big basket of Oval-shaped tomatoes now sells for an average of N17,000, indicating a 6.3% increase in price when compared to N16,000 recorded in September. A big bag of Melon increased by 22.4%, to sell for an average of N46,500.

The report contains information on items that witnessed price increase, price decrease, as well as information on special markets, and insights.

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READ: Alert: Tomato prices are up by over 80% in these Lagos markets

Items that witnessed price increase

  • A carton of Turkey increased by 5.8% to sell for an average of N18,333, compared to an initial average of N17,333 recorded in September 2020.
  • A carton of full Chicken that was sold for an average of N14,000 two weeks ago, now sells for an average of N14,500. This represents 3.6% increase in price.
  • A carton of Chicken laps increased by 2.4% to sell for an average of N14,333, compared to N14,000 recorded in September.
  • A big bag of Bush mango seed, popularly known as “Ogbono” now sells for N100,000 at Mile-12 market. A 5.3% increase compared to N95,000 reported earlier.
  • A big bag of dry Onions increased by 48% to sell for an average of N55,500, compared to an initial average of N37,500.
  • A big bag of new Onions spiked by 60.8% to sell for an average of N41,000. It was initially sold for an average of N25,500.
  • A big bag of Yellow Maize that was initially sold for an average of N17,667 now sells for an average of N20,167 – a 14.2% increase in two weeks.
  • A big bag of White Maize also increased by 17.7% to sell for an average of N20,000, compared to an initial average of N17,000.
  • A big bag of Pepper increased by 9.7% to sell for an average of N17,000, while a medium-sized bag sells for an average of N9,000 – a 38.5% increase in price.
  • A Mackerel fish, popularly known as “Kote” sells for an average of N663. An increase of 3.9% from an initial average of N638.
  • A big basket of Oval-shaped Tomatoes now sells for N17,000 at Mile-12 market, compared to N16,000 recorded in the later part of last month. A small basket increased by 5.6% to sell for N9,500.
  • A pack of 500g Dangote Pasta increased marginally by 1.21% to sell for an average of N4,175, compared to an initial average of N4,125.
  • A big bag of Melon increased by 22.4% to sell for an average of N46,500, compared to an initial N38,000 recorded in September.

READ: Food items’ stock pile-up across major markets, as prices continue to drop 

Items that witnessed price decrease

  • A big basket of Sweet Potato now sells for an average of N13,500, from an initial average of N14,000 – a 3.6% reduction in price.
  • The price of a big basket of Irish Potatoes reduced by 29.5% to sell for an average of N21,500, compared to N30,500 recorded in September.
  • A 50kg bag of White Beans sells for an average of N25,025. It reduced by 15.9% from an initial average of N29,750.
  • 5 litres gallon of Palm Oil currently sells for an average of N2,375 from an initial average of N2,425. 25 litres gallon sells for an average of N12,125.
  • A big bag (nylon) of Crayfish currently sells for an average of N12,500, compared to an initial average of N13,000.
  • A big Horse Mackerel fish popularly known as “Kote” sells for an average of N625. It was initially sold for an average of N663.

READ: Prices of food items jump across Lagos markets, as traders lament transport fare hike

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Items that maintained initial prices

  • A 50kg bag of Royal Stallion Rice still sells for an average of N30,333, Mama Gold (N29,750), Caprice (N29,667), and Mama’s Pride (N25,500).
  • A big sized bag of Brown Beans still sells for an average of N33,000.
  • The various brands of noodles maintained their initial prices. 305g carton of Indomie still sells for an average of N3,150, 210g of Indomie (N3,200), and 100g of Chikki (N2,200).
  • The price of a 50kg bag of Yellow Garri remains unchanged at an average of N13,000.
  • The price of a 50kg bag of Flour remains on the high, as Dangote sells for an average of N14,333, Honey well (N14,375), and Mama Gold (N14,125).
  • A big basket of Round-shaped Tomatoes still sells for an average of N14,000, while a medium-sized basket sells for an average of N8,500.

READ: Prices of beans, potatoes, palm oil, others jump as traders lament hike, seasonal scarcity

Special markets/items

Nairametrics research found that there are two varieties of pepper at Mile-12 market, a small and a big one. A big bag of the big Pepper sells for an average of N17,000 while that of the small Pepper sells for an average of N10,000. Interestingly, a medium-sized bag of the small pepper sells for an average of N9,000.

Mr. Musa, a Pepper seller at the market, explained that the reason for the difference in price between the two varieties is that the small pepper is more peppery, when compared to the bigger one. He added that most people from the Western part of the country prefer to buy the small ones, as they like to prepare spicy meals.

READ: Data War: MTN edges out Airtel, first time in 5 months as more subscribers dump Glo, 9mobile 

Our agent at Daleko market, told Nairametrics Research that one of the major types of brown beans (Niger beans) is now scarce in the market, same goes for Maiduguri beans. However, she stated that “Oloyin Pelebe” is currently sold for an average of N22,000, Gombe beans (big bag) for an average of N33,000, and the small bag sells for an average of N27,000.

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READ: Prices of tomatoes, frozen foods, onions, others jump, as low demand hits imported rice 

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Market insights

Scarcity of major food items across Lagos markets has caused a significant hike in the price of commodities, as traders highlighted the reasons for the persistent increase.

Mr. KC from Mile-12 market said it is a surprise to traders that Melon is now sold for N48,000 in the market, since it is always cheap at this time of the year. However, he attributed the price increase to scarcity of the commodity. According to him, farmers did not cultivate significant quantity of melon because of the incessant rain in recent times.

“Melon requires sun to dry; however, the northern part of the country witnessed lots of rainfall this year, which really affected the cultivation of the commodity during this period,” he added.

Nairametrics Research met a scanty Onion section of Mile 12 market during visitation this week. In a discussion with one of the sellers named Ismail, he said that the prices of onions have spiked significantly because of its scarcity.

According to Ismail, there has been limited influx of new onions into the market, while dry onions is even more limited. He said the price is also expensive in the north.

Explore Data on the Nairametrics Research Website

ItemsBrandUnitMUSHIN (08/10/2020)DALEKO (08/10/2020)OYINGBO (08/10/2020)MILE 12 (08/10/2020)Average MUSHIN (24/09/2020)DALEKO (24/09/2020)OYINGBO (24/09/2020)MILE 12 (24/09/2020)Average
Bag of RiceMama Gold10kgNA4500450050004666.6666666667NA4500450050004666.6666666667
Bag of RiceRoyal Stallion50Kg30000NA300003100030333.33333333330000NA300003100030333.333333333
Bag of RiceRice Master10kg5000NA450047505000NA45004750
Bag of RiceMama Gold50kg29500295003000030000297502950029500300003000029750
Bag of RiceCaprice50kg30000NA290003000029666.66666666730000NA290003000029666.666666667
Bag of RiceMama's Pride50kg25500255002500026000255002550025500250002600025500
Bag of BeansOloyin50kg20000210002000020333.3333333332000019500200002200020375
Bag of BeansWhite50kg3100320003300032000250253000030000300002900029750
Bag of BeansBrown>50kg32000340003500031000330003200034000350003100033000
Tuber of YamAbuja1 Big Size Tuber10009008501000937.510009008501000937.5
Tuber of YamAbuja1 Medium Size Tuber600600650700637.5600600650700637.5
Carton of NoodlesIndomie305g (Belle full)3200310032003100315032003100320031003150
Carton of NoodlesIndomie210g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2200220021002300220022002200210023002200
Carton of NoodlesMinimie70g19001750170018001787.519001750170018001787.5
Carton of NoodlesGolden Penny70g1700150016001600160017001500160016001600
Bag of GarriIjebu50kg14000135001400013500137501400013500135001350013625
Bag of GarriWhite50kg13000125001250013000127501300013000125001300012875
Bag of GarriYellow50kg12500130001300013500130001250013000130001350013000
Basket of PotatoSweetBig Basket13500135001400014000
Basket of PotatoSweetSmall Basket700700700700700700
Basket of PotatosweetSmallest Basket400250325400250325
Basket of PotatoIrishBiggest Basket200002300021500330002800030500
Basket of PotatoIrishSmall Basket2500250025002500
Basket of PotatoIrishSmallest Basket170015001600170015001600
Packet of PastaGolden Penny500g4400440043004200432544004400430042004325
Packet of PastaDangote500g4200415042004150417541004100420041004125
Packet of PastaPower (1 pc)500g250220250220235220220220220220
Packet of PastaBonita (1 pc)500g200220230220217.5200200230220212.5
Gallon of Palm OilLocal5 Litres2700230023002200237527002300230024002425
Gallon of Palm OilLocal25 Litres12000115001250012500121251200011500125001300012250
Gallon of Vegetable OilLocal5 Litres2900300030003500310029003000300035003100
Gallon of Vegetable OilLocal25 Litres14000150001450015000146251400015000145001500014625
Gallon of Vegetable OilKings5 Litres3200300030002800300032003000300028003000
Gallon of Vegetable OilWesson5 Litres4500390039004300415045003900390043004150
Gallon of Vegetable OilMamador3.8 Litres25002450250028002562.525002450250028002562.5
Gallon of Vegetable OilPower3 Litres1900180018002200192519001800180022001925
Bunch of PlantainPlantain1 Bunch500500500600525500500500600525
Bag of FlourDangote50kgNA13500150001450014333.333333333NA13500150001450014333.333333333
Bag of FlourHoney well50Kg14500135001450015000143751450013500145001500014375
Bag of FlourMama Gold50kg14000145001400014000141251400014500140001400014125
MilkPeak Powdered (Tin)400g1200120012001200120012001200120012001200
Milkpeak Powdered(Tin)900g23502400240023002362.523502400240023002362.5
MilkPeak milk (Refill)500g1000100010001000100010001000100010001000
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2600200020002000215026002000200020002150
MilkDano (Refill)500g800800800800800800800800800800
MilkThree Crown (Refill)380g700700750700712.5700700750700712.5
MilkLoya Powdered (Tin)400gNA1000100010501016.6666666667NA1000100010501016.6666666667
MilkLoya (Refill)400gNA800850800816.66666666667NA800850800816.66666666667
MilkCoast (Refill)500gNA750750750750NA750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2200210021002100212522002100210021002125
Cocoa BeveragesMilo Refill500g10009009009009251000900900900925
Cocoa BeveragesBournvita Refill500g10001000950900962.510001000950900962.5
Cocoa BeveragesBournvita (Plastic)900g2000200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g850800850850837.5850800850850837.5
Cocoa BeveragesOvaltine(Plastic)500g1100110010001100107511001100100011001075
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g300290300300297.5300290300300297.5
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g500550550550537.5500550550550537.5
SugarGolden Penny Sugar (cube)500g300350350400350300350350400350
BreadVal-U1 loaf450450450500462.5450450450500462.5
BreadButterfield1 loaf450450500500475450450500500475
EggN/ACrate1200120012001200120012001200120012001200
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre550550550600562.5550550550600562.5
JuiceChivita1 litre550550600550562.5550550600550562.5
GasRefilling12.5kg3200320034003300327532003200340033003275
GasRefilling5kg1400140014001300137514001400140013001375
TomatoesBig Basketround shaped14000140001400014000
TomatoesMedium Basketround shaped8500850085008500
TomatoesSmall Basketround shaped6000600060006000
TomatoesBig BasketOval Shaped17000170001600016000
TomatoesSmall BasketOval Shaped9500950090009000
FishKote (Horse Mackerel)1 big Fish650600600650625650700650650662.5
FishTitus (Mackerel)1 big Fish600650650750662.5600600600750637.5
PepperBig bag17000170001550015500
PepperMedium bag9000900065006500
MaizeYellow21000200001950020166.66666666718000185001650017666.666666667
MaizeWhite2050019500200002000017000180001600017000
MelonBig bag450004800046500400003600038000
OnionsBig bagDry Onions560005500055500370003800037500
OnionsBig bagNew Onions400004200041000250002600025500
Bush mango seed(Ogbono)1 big bag1000001000009500095000
Frozen foodFull chickenCarton1450014000150001450013500135001500014000
Frozen foodChicken lapCarton14000140001500014333.333333333130001500014000
Frozen foodTurkeyCarton19000180001800018333.33333333317000175001750017333.333333333
Crayfish120001300012500130001300013000

About Nairametrics Food Price Survey

Nairametrics Food Price Watch, is a bi-weekly Household Market Survey that covers the prices of major food items in Nigeria, with emphasis on five major markets in Lagos – Mushin market, Daleko market, Oyingbo market, Idi-Oro market, and Mile 12 market.

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Research Analysis

Nigeria’s dollar earnings fall by over $7 billion due to Covid-19

Nigeria recorded a whopping 52% drop in exports proceeds in the quarter ending June 2020 mostly due to the effects of Covid-19.

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Petrol importation gulps N1.13 trillion in 2019, as Nigeria fails another deadline 

Nigeria recorded a whopping 52% drop in exports proceeds in the quarter ending June 2020 mostly due to the effects of Covid-19. This is contained in the Current Account Deficit numbers published by the Central Bank of Nigeria. The current account deficit for the quarter fell to $3.2 billion compared to first-quarter data of $5.6 billion, the latest report indicates.

Explore Data on the Nairametrics Research Website

Export drop

According to the data, total exports in the second quarter of the year fell to $6.3 billion from $13.8 billion in the first quarter of 2020 before the Covid-19 lockdown grounded the economy. Crude Oil inflows which Nigeria relies on for 85% of its export proceeds went from $11.2 billion in the first quarter to just $5.2 billion in the second quarter of the year.

READ: PenCom recovers N17.51billion from defaulting employers, imposes penalties

Crude Oil prices fell to as low as $20 per barrel in April as markets panicked as the Covid-19 lockdown spread globally. OPEC members also decided to cut crude oil output with Nigeria’s quota falling from 1.8 million barrels per day to just 1.4 million barrels per day. This culminated in lower export proceeds for Nigeria piling pressure to devalue the currency after the first devaluation in late March.

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READ: Nigeria’s forex devaluation timeline – 2020

Non-oil revenues also fell sharply from $2.1 billion in the first quarter of the year to $1.1 billion in the second quarter of the year revealing how damaging the pandemic has been on the economy. Nigeria earned an average of $2.6 billion per quarter from non-oil exports in 2019, the highest since 2008 when the CBN started publishing figures.

Imports also fall

Nigeria’s dollar outflow for imports also fell from $14.7 billion in the first quarter of 2020 to $10 billion in the second quarter of the year. The fall was also driven by a drop in oil imports falling to just $307 million from $3.7 billion. Non-oil exports which is a major driver of dollar outflows from Nigeria $11 billion to $9.7 billion. This was also due to the impact of the lockdown as most goods imported into the country from other parts of the world fell.

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READ: Samsung Electronics profits increased by 58% in the third quarter

Despite several import substitution policies of the current government, Nigerians spent an average of $12.7 billion on the importation of goods into the country in 2019 compared to $7.3 billion a year earlier. The country’s main non-oil imports are boilers, machinery and appliances gulping over 27% of imports. Vehicle parts are also a major source of dollar outflows with over 12.8% of the value of what is imported into the country.

READ: Nigeria’s worsening current account deficit piles pressure on exchange rate

The government has focussed its ban on accessing forex for the importation of listed items which they believe can be made in Nigeria. Most of these items are food-related.

Why this matters: Nigeria’s exchange rate is mostly determined by how much dollars the country can attract compared to outflows.

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READ: CBN Commences distribution of grants and inputs worth over N700 million to cocoa Farmers

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  • With exports proceeds down by over 50% pressure was on the central bank to devalue the naira.
  • However, the CBN also had the option of managing the demand side of the deficit culminating in a drop in current account deficits.
  • The more Nigeria earns from exports compared to imports the higher the chances that the exchange rate will remain stable.
  • For example, in 2018 when the exchange rate was stable at N360/$1, Nigeria earned about $15.3 billion in dollar inflows or exports (mostly from crude oil sales) compared to $10.1 billion in imports.
  • Thus Nigeria will need to either earn more from exports or cut some of its reliance on imports if it is to maintain a stable exchange rate for the country.

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Research Analysis

Prices of rice, tomatoes, frozen foods increase in September as traders lament low turnover

A carton of full chicken that was initially sold for an average of N13,000 now sells for N14,000.

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Nigeria's Inflation

Nigerians continue to grapple with the persistent increase in prices of household food items as rice, vegetable oil, flour, tomatoes, onions and frozen food items recorded significant increase in price at the end of September. This was contained in the latest Household Market Survey conducted by Nairalytics, the research arm of Nairametrics.

Major food items continue to jump across Lagos markets as sustained structural issues affecting food production and supply were further exacerbated by the lockdown measures implemented by the Government in response to curbing the spread of the COVID-19 pandemic.

READ: US headline crude oil crashes further, below $0 in an unprecedented outcome

According to the latest survey conducted by Nairalytics, a big bag of round shaped tomatoes spiked by 16.7% to sell for an average of N14,000 compared to N12,000 recorded a fortnight ago. Also, a cartoon of frozen Chicken that was initially sold for an average of N13,000 now sells for N14,000.

On the flip side, a 50kg bag of Mama Gold Flour which endured a sudden increase two weeks ago to N16,500 now sells for an average of N14,125.

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The report contains information on items that witnessed price increase, price decrease, as well as information on special markets, and insights.

READ: Unknown entity transfers $166 million worth of Bitcoins

Items that witnessed price increase 

Listed below are the items that recorded significant price increase:

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  • A 50kg bag of Mama’s Pride rice increased by 3% to sell for an average of N25,500 compared to an initial average of N24,750.
  • Also, a 50kg bag of foreign rice (Mama Gold) rice sells for an average of N29,750. This indicates a 3% increase compared to N28,875 recorded earlier in September.
  • A 50kg bag of Royal Stallion (Foreign rice) also increased by 1.1%. selling for an average of N30,333 as against N30,000 earlier reported.
  • A 70g carton of Golden Penny noodles recorded an 8.47% increase in price to sell for an average of N1,600 compared to N1,475 recorded two weeks ago.
  • A 5 litres gallon of local vegetable oil that was sold for an average of N2,750 two weeks ago now sells for N3,100 indicating a 12.7% increase in price.
  • Also, a 25 litres gallon increased by 4.84% to sell for an average of N14,625 from initial average N13,950.
  • A big basket of round shaped tomatoes increased by 16.7% to sell for an average of N14,000 as against N12,000 recorded two weeks ago.
  • A medium-sized basket of round shaped tomatoes also increased by 21.4% to sell for an average of N8,500 compared an initial average of N7,000.
  • A big basket of oval-shaped tomatoes now sells for an average of N16,000 representing an 100% increase in price.
  • A carton of full chicken sells for an average of N14,000 compared to an initial average of N13,000. The frozen food item increased by 7.7%.
  • While the price of a carton of chicken laps, also increased by 7.7% to sell for an average of N14,000.
  • A big bag of dry onion now sell for an average of N37,500, increasing by 7.9% from an initial average of N34,750.

Items that witnessed price decrease

Some of the items that recorded slight decrease in prices include:

  • A 50kg bag of white beans recorded a decline in price of 6.3% to sell for an average of N29,750 as against N31,750 recorded earlier in the month.
  • A medium-sized tuber of yam now sells for an average of N638, representing 10.5% reduction in price.
  • Mama Gold flour (50 kg) that was sold for an average of N16,500 two weeks ago, is now being sold for an average of N14,125.
  • A big bag of pepper currently sells for an average of N15,500, decreasing by 3.1% from an initial average of N16,000 while a medium bag size decreased by 7.1% to sell for an average of N6,500.
  • The price of a big bag of yellow maize dipped by 14.5% to sell for an average of N17,667 while that of white maize also reduced by 15.7% to sell for an average of N17,000.
  • Bush mango seed (Ogbono) that was sold for N105,000 earlier in September, now sells for an average of N95,000 representing 9.5% reduction in price.

Items that maintained initial prices

  • Items whose prices remained the same, compared to two weeks ago include:
  • A big bag of new onions continues to sell for an average of N25,500, same as recorded two weeks ago
  • A crate of raw egg still sells for an average of N1,200 across the four markets.
  • Refilling of 12.5kg cylinder of household cooking gas still cost average of N3,275 while 5kg cylinder costs an average of N1,375.
  • Dangote and Honeywell flour still sell for an average of N14,333 and N14,375 respectively.
  • A big basket of sweet potatoes continues to sell for an average of N14,000 while Irish potatoes of the same size, still sell for an average of N30,500
  • 50kg bag of beans (Oloyin) still sell for an average of N20,375.

Special markets/items

  • Recall that, Nairalytics earlier reported a significant surge in the price of flour across major markets in Lagos State. A visit to Oyingbo market revealed that the price of flour is still very much on the high side as most traders sell a 50kg bag of flour between N13,500 and N14,500 depending on the brand of the product.
  • According to Mrs. Esther who bakes cake at Oyingbo market, “the increase in the price of flour, is really affecting us seriously, we bought a bag of flour for N11,000 before lockdown, now we are forced to buy for as high as N14,000 while we also buy 25 litres gallon of vegetable oil for an average of N15,000 despite the fact that we cannot increase the price of our goods so as not to discourage buyers”. She stated further that the increase in price of flour is affecting their ability to make profit and grow their businesses.
  • Below are the prices of various brands of rice, sighted at Daleko market; Mama Gold (10kg) – N4,500, Royal Stallion (50kg) – N29,000, Rice Master (10kg) – N5,000, Mama Gold (50kg) – N29,500, Caprice (50kg) – N29,000, Mama’s Pride (50kg) – N25,500, Umza (50kg) – N24,500, Labana (50kg) – N25,000, Alamzat (50kg) – N23,500, Big Bull (50kg) – N25,000, Mama’s Choice (50kg) – N24,000.

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Market insights

  • Nigerians have been hit with persistent increase in prices of most food items despite the easing of lockdown in the country. Nairametrics visited some tomatoes sellers at Mushin and obtained some insightful responses as to cause of the recent spike in the price of tomatoes.
  • According to Mrs. Alomaja, Northerners bringing in the items to the market are complaining of rain spoiling their harvests, which has, in turn, affected the price of the commodity. “this year, it did not rain as much as anticipated, and now when it is time to harvest heavy downpour of rain is now destroying the harvest in the farm” she said. This implies that the heavy rainfall has destroyed most of the harvest, hereby limiting the quantity of goods available for sale.
  • Mr Yaya, on the other hand told Nairametrics that the increase in price of tomatoes is due to seasonal fluctuations, considering that the year is gradually getting to the end, a period characterized by increase in price of food items.
  • Meanwhile, the price of a big bag of dry onions increased by 7.9% to sell for an average of N37,500. The increase has been attributed to scarcity of the commodity in the market. Mr. Kelechi, a trader at Mile 12 told Nairametrics that there have been limited quantity of the commodity coming into the market in recent times, which has caused the price of the item to surge.

READ: Smuggling of imported rice hits Lagos major markets, as residence brace for shutdown

ItemsBrandUnitMUSHIN (24/09/2020)DALEKO (24/09/2020)OYINGBO (24/09/2020)MILE 12 (24/09/2020)Average MUSHIN (10/09/2020)DALEKO (10/09/2020)OYINGBO (10/09/2020)MILE 12 (10/09/2020)Average
Bag of RiceMama Gold10kgNA4500450050004666.6666666667NA4000450050004500
Bag of RiceRoyal Stallion50Kg30000NA300003100030333.33333333330000NA290003100030000
Bag of RiceRice Master10kg5000NA450047504000NA45004250
Bag of RiceMama Gold50kg29500295003000030000297502950029000290002800028875
Bag of RiceCaprice50kg30000NA290003000029666.66666666730000NA290003000029666.666666667
Bag of RiceMama's Pride50kg25500255002500026000255002500024000250002500024750
Bag of BeansOloyin50kg20000195002000022000203752000019500200002200020375
Bag of BeansWhite50kg30000300003000029000297503000030000350003200031750
Bag of BeansBrown>50kg32000340003500031000330003200034000350003100033000
Tuber of YamAbuja1 Big Size Tuber10009008501000937.5100090010001000975
Tuber of YamAbuja1 Medium Size Tuber600600650700637.5600800650800712.5
Carton of NoodlesIndomie305g (Belle full)3200310032003100315032003100320031003150
Carton of NoodlesIndomie210g (Hungry man)3200320032003200320032003200320032003200
Carton of NoodlesChikki100g2200220021002300220022002200210021002150
Carton of NoodlesMinimie70g19001750170018001787.521001650170016501775
Carton of NoodlesGolden Penny70g1700150016001600160017001400140014001475
Bag of GarriIjebu50kg14000135001350013500136251400013500130001300013375
Bag of GarriWhite50kg13000130001250013000128751300012500125001250012625
Bag of GarriYellow50kg12500130001300013500130001250013000120001300012625
Basket of PotatoSweetBig Basket14000140001400014000
Basket of PotatoSweetSmall Basket700700700700700700
Basket of PotatosweetSmallest Basket400250325400250325
Basket of PotatoIrishBiggest Basket330002800030500330002800030500
Basket of PotatoIrishSmall Basket2500250025002500
Basket of PotatoIrishSmallest Basket170015001600170015001600
Packet of PastaGolden Penny500g4400440043004200432544004400430042004325
Packet of PastaDangote500g4100410042004100412541004100420041004125
Packet of PastaPower (1 pc)500g220220220220220220220220220220
Packet of PastaBonita (1 pc)500g200200230220212.5200200230220212.5
Gallon of Palm OilLocal5 Litres2700230023002400242527002300230024002425
Gallon of Palm OilLocal25 Litres12000115001250013000122501200011500125001300012250
Gallon of Vegetable OilLocal5 Litres2900300030003500310027002500230035002750
Gallon of Vegetable OilLocal25 Litres14000150001450015000146251400013500135001480013950
Gallon of Vegetable OilKings5 Litres3200300030002800300032003000300028003000
Gallon of Vegetable OilWesson5 Litres4500390039004300415045003900390043004150
Gallon of Vegetable OilMamador3.8 Litres25002450250028002562.525002450250028002562.5
Gallon of Vegetable OilPower3 Litres1900180018002200192519001800180022001925
Bunch of PlantainPlantain1 Bunch500500500600525500500500600525
Bag of FlourDangote50kgNA13500150001450014333.33333333313500150001450014333.333333333
Bag of FlourHoney well50Kg14500135001450015000143751450013500145001500014375
Bag of FlourMama Gold50kg14000145001400014000141251600016500160001750016500
MilkPeak Powdered (Tin)400g1200120012001200120012001200120012001200
Milkpeak Powdered(Tin)900g23502400240023002362.523502400240023002362.5
MilkPeak milk (Refill)500g1000100010001000100010001000100010001000
MilkDano Powdered (Tin)500g1000100010001000100010001000100010001000
MilkDano Powdered(Tin)900g2600200020002000215026002000200020002150
MilkDano (Refill)500g800800800800800800800800800800
MilkThree Crown (Refill)380g700700750700712.5700700750700712.5
MilkLoya Powdered (Tin)400gNA1000100010501016.66666666671000100010501016.6666666667
MilkLoya (Refill)400gNA800850800816.66666666667800850800816.66666666667
MilkCoast (Refill)500gNA750750750750750750750750
Cocoa BeveragesMilo (Tin)500g10001100105010001037.510001100105010001037.5
Cocoa BeveragesMilo (Tin)900g2200210021002100212522002100210021002125
Cocoa BeveragesMilo Refill500g10009009009009251000900900900925
Cocoa BeveragesBournvita Refill500g10001000950900962.51000950900950
Cocoa BeveragesBournvita (Plastic)900g200020002000200020002000200020002000
Cocoa BeveragesOvaltine Refill500g850800850850837.5800850850833.33333333333
Cocoa BeveragesOvaltine(Plastic)500g110011001000110010751100100011001066.6666666667
CoffeeNescafe Classic50g600600600600600600600600600600
TeaLipton Yellow label52g300290300300297.5300290300300297.5
TeaTop tea52g300300300300300300300300300300
SugarSt' Loius Sugar(Cube) 500g500550550550537.5500550550550537.5
SugarGolden Penny Sugar (cube)500g300350350400350300350350400350
BreadVal-U1 loaf450450450500462.5450NA450500466.66666666667
BreadButterfield1 loaf450450500500475450450500500475
EggN/ACrate1200120012001200120012001200120012001200
Bottled Water (Refill)CwayRefill600600650600612.5600600650600612.5
Juice5 Alive1 litre550550550600562.5550550550600562.5
JuiceChivita1 litre550550600550562.5550550600550562.5
GasRefilling12.5kg3200320034003300327532003200340033003275
GasRefilling5kg1400140014001300137514001400140013001375
TomatoesBig Basketround shaped14000140001200012000
TomatoesMedium Basketround shaped8500850070007000
TomatoesSmall Basketround shaped6000600055005500
TomatoesBig BasketOval Shaped160001600080008000
TomatoesSmall BasketOval Shaped9000900055005500
FishKote (Horse Mackerel)1 big Fish650700650650662.5600600550650600
FishTitus (Mackerel)1 big Fish600600600750637.5600550550750612.5
PepperBig bag15500155001600016000
PepperMedium bag6500650070007000
MaizeYellow18000185001650017666.66666666721000220001900020666.666666667
MaizeWhite1700018000160001700021500200001900020166.666666667
MelonBig bag400003600038000400003500037500
OnionsBig bagDry Onions370003800037500350003450034750
OnionsBig bagNew Onions250002600025500250002600025500
Bush mango seed(Ogbono)1 big bag9500095000105000105000
Frozen foodFull chickenCarton1350013500150001400013000130001300013000
Frozen foodChicken lapCarton130001500014000130001300013000
Frozen foodTurkeyCarton17000175001750017333.33333333317000165001700016833.333333333
Crayfish130001300013000130001350013250

About Nairametrics Food Price Survey

Nairametrics Food Price Watch, is a bi-weekly Household Market Survey that covers the prices of major food items in Nigeria, with emphasis on five major markets in Lagos – Mushin market, Daleko market, Oyingbo market, Idi-Oro market, and Mile 12 market.

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