The price of foreign-made rice has trickled down significantly in major markets in Lagos State, partly attributable to the recent directive by the federal government of Nigeria to reopen the country’s land borders.
This is according to the latest market survey, carried out by Nairalytics Research – the research arm of Nairametrics.
Nigerians may enjoy some respites going into the Christmas festivities as the price of a 50kg bag of Royal Stallion rice now sells for an average of N26,125 from an initial average of N30,333, representing a 13.9% decrease in price.
The survey further showed that a 50kg bag of Caprice reduced by 10.43% to sell for an average of N26,125 as against an initial average of N29,167 recorded in November 2020. Meanwhile, the price of local rice has remained sticky as a 50kg bag of Mama’s Pride sells for an average of N23,375.
The report highlights information on items that witnessed price increase, price decrease, as well as information on special markets, and insights.
Items that witnessed price increase
- The price of a big basket of oval-shaped tomatoes increased by 11.1% to sell for an average of N10,000, as against an initial average of N9,000 recorded weeks ago.
- A small basket of the oval-shaped tomatoes increased by 9.1% to sell for an average of N6,000 compared to an initial average of N5,500.
- A big bag of pepper now sells for an average of N20,000 from an initial average of N17,000. This represents 17.65% price increase in three weeks.
- Also, a medium-sized bag of pepper sells for an average of N10,000 from an initial average of N8,000, indicating a 25% increase in price.
- A big basket of round shaped tomatoes currently sells for an average of N15,000, compared to N13,000 recorded three weeks ago, it increased by 15.38% in price.
- A medium-sized basket of tomatoes increased by 6.25% to sell for an average of N8,500 from an initial N8,000, while a small basket size spiked by 10% to sell for an average of N5,500.
- 5kg cylinder of cooking gas is currently filled for an average of N3,975, representing 15.22% increase in price compared to an initial average of N3,450.
- Also, a 5kg cylinder that was initially filled for an average of N1,625 now sells for an average of N1,750 indicating a 7.69% increase in price.
Items that witnessed price decrease
- A 50kg bag of Royal Stallion rice sells for an average of N26,125. This represents 13.9% decrease in price compared to an average of N30,333 recorded three weeks ago.
- Also, a 50kg bag of Caprice recorded a 10.43% decrease in price from an initial average of N29,167 to sell for an average of N26,125.
- A 50kg bag of brown beans that was initially sold for an average of N43,250 now sells for an average of N41,500 representing 4.1% decrease in price.
- The price of a 50kg bag of Mama’s Pride rice (Local) decreased marginally by 0.49% to sell for an average of N25,375.
- The price of a big bag of Bush mango seed (Ogbono) reduced by 4.17% to sell for an average of N115,000 as against an initial average of N120,000.
- The price of a big bag of dry onions dipped by 2.05% to sell for an average of N95,500 compared to an initial average of N97,500.
- A big bag size of new onions also recorded a decline in price, as it currently sells for an average of N65,000 moving by 7.14% compared to an initial average of N70,000.
Items that maintained initial prices
- A big basket of Sweet potatoes sells for an average of N5,500, a small basket sells for an average of N700 while the smallest basket is sold for an average of N325.
- Also, a big basket of Irish potatoes sells for an average of N20,000, same as recorded three weeks ago.
- A 50kg bag of Honey well and Mama Gold flour sells for N13,950 and N13,850 respectively after witnessing a significant spike in price last month.
- A carton of full chicken is sold for an average of N14,167, turkey (N19,000) while Chicken lap is sold for an average of N14,000.
- A big bag of yellow maize continues to sell for an average of N23,333 while white maize sells for an average of N23,167.
- A big tuber of yam is sold for an average of N763 while a medium size is sold for an average of N525.
- A 50kg bag of garri (Ijebu) still sells for an average of N14,375 while white and yellow garri sells for an average of N10,750 and N11,125 respectively.
The price of onions is yet to normalize after a recent surge in prices. Meanwhile, despite the sustained increase in the price of the commodity, large quantity of onions could be sighted at the onion section of the Mile-12 market as consumers buy in large quantities.
According to an onion seller at the market, he stated that the reason for the large quantity of onion in the market is because of the festivity as the item is always in high demand during the period.
The closure of Nigerian land borders in 2019 resulted in influx of various brands of local rice in the Nigerian market. Meanwhile, the latest survey showed that the prices of local rice remained high. Below are some of the brands of locally produced rice sighted at the various markets and their respective prices.
Ultimate Gold (N23,000), Umza (N24,500), Big bull (N25,500), Mamaan (N22,000), Mama’s Pride (N25,000), and Mama’s Choice (N25,000).
The reduction in the price of foreign rice may be partly attributable to the directive by the federal government to reopen closed land borders in Nigeria. In a discussion with a major rice dealer at Daleko Market, Mrs. Dayo, she explained to Nairalytics that the price of foreign-made rice has reduced significantly to N25,000 in the market. She explained further that, although traders are not allowed to bring in rice from these borders, the price has still recorded a significant decline in the past week.
In an interview session with Mr. Chukwuma, a rice dealer at Daleko Market, he told Nairalytics Research that it is indeed good that the price of foreign rice has declined, but quite bad that locally produced rice that is expected to cost far lesser is still sold for a high price.
According to him, locally produced rice of superior quality is sold within the range of N25,000 and N27,000 while imported rice sells within the same range or even lesser for some unbranded foreign rice.
While discussing with another rice dealer at Mile-12 market by the name, Mrs. Chizoba. She told Nairalytics that although sales have not picked up, transactions are expected to increase later in the week due to the festive period.
|Items||Brand||Unit||MUSHIN (17/12/2020)||DALEKO (17/12/2020)||OYINGBO (17/12/2020)||MILE 12 (17/12/2020)||Average||MUSHIN (26/11/2020)||DALEKO (26/11/2020)||OYINGBO (26/11/2020)||MILE 12 (26/11/2020)||Average|
|Bag of Rice||Mama Gold||10kg||4600||4800||4800||5000||4800||4600||4800||4800||5000||4800|
|Bag of Rice||Royal Stallion||50Kg||26000||25500||26000||27000||26125||30000||NA||30000||31000||30333.333333333|
|Bag of Rice||Rice Master||10kg||5000||NA||4500||4750||5000||NA||4500||4750|
|Bag of Rice||Mama Gold||50kg||26000||25500||26000||27000||26125||29500||29500||30000||30000||29750|
|Bag of Rice||Caprice||50kg||26000||25500||26000||27000||26125||29000||NA||29000||29500||29166.666666667|
|Bag of Rice||Mama's Pride||50kg||25500||25000||25000||26000||25375||25500||25500||25000||26000||25500|
|Bag of Beans||Oloyin||50kg||20000||21000||21000||20000||20500||20000||21000||21000||20000||20500|
|Bag of Beans||White||50kg||40000||43000||45000||43000||42750||40000||43000||45000||43000||42750|
|Bag of Beans||Brown||50kg||43000||38000||42000||43000||41500||43000||42000||45000||43000||43250|
|Tuber of Yam||Abuja||1 Big Size Tuber||800||750||700||800||762.5||800||750||700||800||762.5|
|Tuber of Yam||Abuja||1 Medium Size Tuber||550||500||550||500||525||550||500||550||500||525|
|Carton of Noodles||Indomie||305g (Belle full)||3200||3250||3300||3300||3262.5||3200||3250||3300||3300||3262.5|
|Carton of Noodles||Indomie||200g (Hungry man)||3200||3200||3200||3200||3200||3200||3200||3200||3200||3200|
|Carton of Noodles||Chikki||100g||2200||2200||2100||2300||2200||2200||2200||2100||2300||2200|
|Carton of Noodles||Minimie||70g||1900||1750||1700||1800||1787.5||1900||1750||1700||1800||1787.5|
|Carton of Noodles||Golden Penny||70g||1700||1500||1600||1600||1600||1700||1500||1600||1600||1600|
|Bag of Garri||Ijebu||80kg||14500||14000||14500||14500||14375||14500||14000||14500||14500||14375|
|Bag of Garri||White||50kg||10500||11000||11000||10500||10750||10500||11000||11000||10500||10750|
|Bag of Garri||Yellow||50kg||11000||11000||11500||11000||11125||11000||11000||11500||11000||11125|
|Basket of Potato||Sweet||Big Basket||5500||5500||5500||5500|
|Basket of Potato||Sweet||Small Basket||700||700||700||700||700||700|
|Basket of Potato||sweet||Smallest Basket||400||250||325||400||250||325|
|Basket of Potato||Irish||Biggest Basket||20000||20000||20000||20000||20000||20000|
|Basket of Potato||Irish||Medium Basket||2500||2500||2500||2500|
|Basket of Potato||Irish||Small Basket||1700||1500||1600||1700||1500||1600|
|Packet of Pasta||Golden Penny||500g||4400||4400||4300||4200||4325||4400||4400||4300||4200||4325|
|Packet of Pasta||Dangote||500g||4200||4300||4300||4300||4275||4200||4300||4300||4300||4275|
|Packet of Pasta||Power (1 pc)||500g||250||230||250||230||240||250||230||250||230||240|
|Packet of Pasta||Bonita (1 pc)||500g||220||230||230||220||225||220||230||230||220||225|
|Gallon of Palm Oil||Local||5 Litres||2700||2600||2800||2600||2675||2700||2600||2800||2600||2675|
|Gallon of Palm Oil||Local||25 Litres||13000||13000||13000||13000||13000||13000||13000||13000||13000||13000|
|Gallon of Vegetable Oil||Local||5 Litres||3400||3400||3500||3400||3425||3400||3400||3500||3400||3425|
|Gallon of Vegetable Oil||Local||25 Litres||16000||17000||17000||16500||16625||16000||17000||17000||16500||16625|
|Gallon of Vegetable Oil||Kings||5 Litres||3200||3000||3000||2800||3000||3200||3000||3000||2800||3000|
|Gallon of Vegetable Oil||Wesson||5 Litres||4500||3900||3900||4300||4150||4500||3900||3900||4300||4150|
|Gallon of Vegetable Oil||Mamador||3.8 Litres||2500||2450||2500||2800||2562.5||2500||2450||2500||2800||2562.5|
|Gallon of Vegetable Oil||Power||3 Litres||1900||1800||1800||2200||1925||1900||1800||1800||2200||1925|
|Bunch of Plaintain||Plantain||1 Big Bunch||500||600||500||600||550||500||600||500||600||550|
|Bag of Flour||Dangote||50kg||13600||13600||13800||14000||13750||13600||13600||13800||14000||13750|
|Bag of Flour||Honey well||50Kg||14000||13600||14000||14200||13950||14000||13600||14000||14200||13950|
|Bag of Flour||Mama Gold||50kg||13800||13600||14000||14000||13850||13800||13600||14000||14000||13850|
|Milk||Peak Powdered (Tin)||400g||1200||1300||1200||1250||1237.5||1200||1300||1200||1250||1237.5|
|Milk||Peak milk (Refill)||500g||1200||1100||1200||1200||1175||1200||1100||1200||1200||1175|
|Milk||Dano Powdered (Tin)||500g||1200||1200||1100||1200||1175||1200||1200||1100||1200||1175|
|Milk||Loya Powdered (Tin)||400g||1000||1100||1100||1050||1062.5||1000||1100||1100||1050||1062.5|
|Cocoa Beverages||Milo (Tin)||500g||1500||1450||1500||1450||1475||1500||1450||1500||1450||1475|
|Cocoa Beverages||Milo (Tin)||1kg||2500||2450||2400||2500||2462.5||2500||2450||2400||2500||2462.5|
|Cocoa Beverages||Milo Refill||500g||1100||1100||1000||1100||1075||1100||1100||1000||1100||1075|
|Cocoa Beverages||Bournvita Refill||500g||1300||1300||1200||1300||1275||1300||1300||1200||1300||1275|
|Cocoa Beverages||Bournvita (Plastic)||900g||2200||2200||2300||2200||2225||2200||2200||2300||2200||2225|
|Cocoa Beverages||Ovaltine Refill||500g||1000||900||1000||950||962.5||1000||900||1000||950||962.5|
|Tea||Lipton Yellow label||52g||300||290||300||300||297.5||300||290||300||300||297.5|
|Sugar||St' Louis Sugar(Cube)||500g||600||600||600||550||587.5||600||600||600||550||587.5|
|Sugar||Golden Penny Sugar (cube)||500g||400||350||400||400||387.5||400||350||400||400||387.5|
|Bottled Water (Refill)||Cway||Refill||600||650||600||600||612.5||650||650||650||650||650|
|Juice||5 Alive||1 litre||550||550||550||600||562.5||550||550||550||600||562.5|
|Tomatoes||Big Basket||round shaped||15000||15000||13000||13000|
|Tomatoes||Medium Basket||round shaped||8500||8500||8000||8000|
|Tomatoes||Small Basket||round shaped||5500||5500||5000||5000|
|Tomatoes||Big Basket||Oval Shaped||10000||10000||9000||9000|
|Tomatoes||Small Basket||Oval Shaped||6000||6000||5500||5500|
|Fish||Kote (Horse Mackerel)||1 kg||650||600||600||600||612.5||650||600||600||600||612.5|
|Fish||Titus (Mackerel)||1 kg||600||650||650||650||637.5||600||650||650||650||637.5|
|Onions||Big bag||Dry Onions||94000||97000||95500||95000||100000||97500|
|Onions||Big bag||New Onions||65000||65000||65000||70000||70000||70000|
|Bush mango seed||(Ogbono)||1 big bag||115000||115000||120000||120000|
|Frozen food||Full chicken||Carton||14500||14000||14000||14166.666666667||14500||14000||14000||14166.666666667|
|Frozen food||Chicken lap||Carton||14000||14000||14000||14000||14000||14000||14000||14000|
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.
Dangote Sugar, sweet in more ways than one
Significant growth in gross revenue was driven largely by sale to Nigerian Bottling Company Limited and Seven-Up Bottling Company Limited.
By refining capacity, Dangote Sugar Refinery Plc (DSR Plc) is acknowledged as the largest Sugar Refinery in sub-Saharan Africa and one of the largest in the world. With up to 60 percent market share, it is also clearly, the most dominant player in the Nigerian sugar market.
DSR Plc recently released its audited Financial Statements for the year ended December 31, 2020 and overall and year-on-year group performance results were very good.
Despite the impact of the Covid-19 induced lockdown which curtailed distribution across the country and resulted in decreased revenues from income generated from freights, gross revenues increased by over 33 percent year-on-year to ₦ 214.3 billion. The significant growth in gross revenue was driven largely by a rise in revenue from the sale of its 50kg sugar, with the two main customers being the Nigerian Bottling Company Limited and Seven-Up Bottling Company Limited who operate principally from Lagos.
Year-on-year, gross profit increased by over 40 per cent to ₦ 53.75 billion, Profit before tax increased by almost 53 per cent to ₦ 45.62 billion, and Profit after tax increased by 33 per cent to ₦ 29.78 billion.
Notwithstanding the good result, the group operating results showed some issues and headwinds. First, during the year, DSR Plc wound up Dangote Niger Sugar Limited (one of four companies that had been set up to acquire large expanse of land and locally grow sugarcane as part of its concerted backward integration project). The winding-up was sequel to continued community dispute over land acquired in Niger State for this purpose. This winding-up event cost DSR Plc approximately ₦ 100 million.
Second, there continues to be a heavy reliance on Lagos for its gross revenues as revenues generated from Lagos State increased significantly from circa 33 per cent at the end of 2019 to over 50 per cent by the end of 2020. The share of the Lagos segment in gross revenue thus continued to grow and currently represents a significant market concentration risk for DSR Plc.
Third, provision for impairment on financial assets or in simple terms, receivables that are unlikely to be collectable, also trended upwards from ₦ 1.3 billion in 2019 to ₦ 1.45 billion by end of 2020 with net financing expenses also rising significantly from ₦ 516.2 billion in 2019 to ₦ 1.92 billion by the end of 2020. This rise in expenses was largely driven by a significant rise in exchange losses incurred in the ordinary course of business, rising from about ₦ 7 million in 2019 to over ₦ 1.57 billion at the end of 2020.
Finally, administrative expenses represented mainly by employee salaries grew year-on-year by over ₦ 1.2 billion.
With the recent reopening of land borders, we expect that revenues and margins will become squeezed as sales and production volumes become constrained by the influx of largely smuggled, lower quality, and much cheaper sugar and its substitutes. DSR Plc’s sugar refinery is also strategically located very close to the Apapa port and its logistics operations, distribution of raw materials and delivery of finished goods will continue to be impacted by the infamous Apapa Traffic Gridlock and road diversions/closures around the axis. Although the effort of Lagos state and the recent introduction of the electronic call up of truck by the NPA has eased the issue, still, it needs to be watched closely.
Earnings per share at the end of 2020 was ₦ 2.45 (2019: ₦ 1.87; 2018: ₦ 1.85)
Subject to approval at its forthcoming Annual General Meeting, DSR Plc board of directors have proposed a dividend of N1.50k per ordinary share (2019: ₦ 1.10k, 2018: ₦ 1.10k).
This performance is sweet in more ways than one.
The Nigerian economy is increasingly dollarized but there is a way-out
Nigeria’s overdependence on Oil has brought about high dollarization in Africa’s biggest economy.
For managers of the Nigerian economy, it was a huge sigh of relief when the National Bureau of Statistics reported that the country had surprisingly exited a recession in the 4th quarter of 2020. Contrary to most analyst expectation, the Nigerian economy grew by 0.11% in the 4th quarter of 2020.
Despite the return to growth, albeit tepid, a dark cloud of uncertainty continues to hover over the minds of millions of Nigerians as the broader economy remains in a fragile state. A key factor that remains a bellwether for the economy is the exchange rate, which is always perfectly correlated with the price of oil and the resultant dollar related export earnings.
Data has repeatedly shown that the country of over 200 million people is affected by the volatility of crude oil prices in the international market, particularly in the exchange rate value of the naira. Without oil, the Nigerian economy in its current state will collapse.
Data from Nairalytics, a data-sharing portal, reveals that the oil sector provides for 85% of Nigeria’s export earnings and 55% of its government revenues, making the nation highly dependent on the dollar for its survival. It appears a lot of financially savvy Nigerians now this already and are increasing their dollar positions.
According to Silas Ozoya, Founder/CEO of SUBA Capital LLC, in an exclusive interview with Nairametrics, a growing number of Nigerians are getting more attached to the US dollar due to high inflation and low purchasing power of the naira.
“Many Nigerians are beginning to dollarize their spending, investment and asset holdings to hedge against the ever-increasing inflation rate and our strong economic romance with recession,” Ozoya said.
Nigeria, Africa’s biggest crude oil producer, has been heavily impacted by the plunge in crude oil prices following the outbreak of the COVID-19 pandemic, with the nation’s authorities adjusting the naira twice in the year 2020 to deal with the pressure.
Besides the drop in foreign exchange revenues from crude oil export, diaspora remittances, which made up about 5% of Nigeria’s GDP in the year 2019, also experienced a significant decline in 2020, again due to the impact of the pandemic and the economic challenges faced by many nations across the globe.
Uwa Osadiaye, a financial analyst in a leading merchant bank, in a note to Nairametrics, revealed that the Nigerian apex bank had made great efforts to reduce the country’s high dependence on the dollar. He advised the nation to increase its Agricultural production.
“The central bank has tried to do this with little success but I believe that beyond administrative measures, the key could lie in increased domestic production of things we consume that aren’t commoditized internationally for a start, such as food crops,” Osadiaye said.
Temitope Busari, CFA, in a telephone interview with Nairametrics, said that it was time for Nigeria as a country to diversify.
“One outcome of the diversification of the Nigerian economy, and perhaps the most critical one at this time, is the potential to diversify our foreign exchange earnings as a sovereign state. It will reduce overdependence on crude oil, maximize opportunities in erstwhile neglected sectors and project the country as the destination for top-class value creation in other areas outside being an oil-producing state,” Busari stated.
The financial analyst also spoke on the need for Africa’s leading oil producer to invest more in intellectual property and encourage Nigeria’s talent in the diaspora, saying:
“We have produced some of the most brilliant minds in the world evidenced by the ground-breaking successes recorded by Nigerians in diaspora (Medical professionals, Software engineers, resilient small business owners to mention a few), and we must begin to drive policies to retain that talent in-country and make the world pay premium dollar for it.”
Adetayo Teluwo, a scholar at Warwick Business School, said that the narrative seems to be changing as Nigerians are now beginning to embrace homemade goods.
“The Fashion & Style scene continues to boom. From side hustles to globally-competitive websites with options to accept payments from customers all over the globe,” Teluwo said.
Economic experts believe that the way to solve this growing menace is for Nigeria to promote free markets and support large scale exports from the Agricultural, Mining, and Technology sectors. The country should tap into its raw diamond which is “intellectual services” to develop a knowledge economy.
Nigeria can draw lessons from India, which has performed remarkably well in creating an outsourcing and knowledge-based economy valued at over 150 billion dollars per annum. This has put India on the technology map, as a destination of low-cost but high-quality technical services, helping the densely populated nation to generate sufficient economic ripple effect to drive job and wealth creation.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.