It appears Nigerians are in for good times in the new year, as the price of bags of local and foreign rice, onions, pepper, tomatoes, amongst others recorded a significant drop in price.
This is according to the latest market survey, carried out by Nairalytics Research – the research arm of Nairametrics.
The survey revealed that the price of a 50kg bag of locally produced rice dipped by 6.4% from an average of N25,375 recorded in December to an average of N23,750 while a bag of foreign rice of the same size now sells for an average of N24,500 as against an initial average of N26,125.
Also, the price of a bag of dry onions dropped by 77.5% to sell for an average of N21,500 compared to an initial average of N95,500 while the price of new onions crashed by 74.6% to sell for an average of 16,500.
This report contains information on items that witnessed price increase, price decrease, as well as information on special markets and insights.
Items that witnessed price increase
- A big bag of melon that was sold for an average of N43,500 in December now sells for an average of N45,000. This represents an increase of 3.45% in three weeks.
- A nylon of crayfish now sells for an average of N14,250, representing an increase of 9.6% compared to an initial average of N13,000.
- The price of a big tuber of yam spiked by 31.2% to sell for an average of N1,000 as against an initial average of N763.
- Also, a medium-sized tuber of yam now sells for an average of N588, indicating an increase of 11.9% compared to an initial average of N525.
- A big basket of sweet potatoes that was sold for an initial average of N5,500, witnessed an increase of 9.1% to sell for an average of N6,000.
- The price of a small-sized basket increased by 3.6% to sell for an average of N727 from an initial average of N700.
- Also, a big basket of Irish potatoes now sells for an average of 25,000 as against an initial average of N20,000. This represents an increase of 25% in three weeks.
Items that witnessed price decrease
- A big basket of round shaped tomatoes that was sold for an average of N15,000 in December, now sells for an average of N6,500. This represents a price decrease of 56.7% in three weeks.
- Also, the price of a medium-sized basket of round shaped tomatoes reduced by 64.7% to sell for an average of N3,000 as against an initial average of N8,500.
- A big bag of pepper now sells for an average of N7,750. This is 61.3% lower than an average of N20,000 recorded in December while a medium-sized bag currently sells for an average of N3,750 as opposed to an initial average of N10,000.
- A 50kg bag of brown beans currently sells for an average of N30,000, representing a 27.7% decline in price compared to an initial average of N41,500.
- The price of a 10kg bag of Mama Gold rice dipped by 8.3% to sell for an average of N4,400 compared to an initial average of N4,800.
- Also, a 50kg bag of Royal Stallion rice that was initially sold for an average of N26,125 now sells for an average of N24,500 while Mama Gold rice of the same size sells for an average of N24,875 as against an initial average of 26,125.
- The price of a carton of full chicken recorded a marginal decrease of 0.29% to sell for an average of N14,125 compared to an initial average of N14,167.
- A big bag of Bush mango seeds (Ogbono) that was sold for an average of N115,000 during Christmas festivity, now sells for an average of N105,000. This represents a price decrease of 8.7%.
Items that maintained initial prices
- A crate of eggs continues to sell for an average of N1,200, the same as recorded in December.
- A big bag of yellow maize is still sold for an average of N20,167, while a bag of white maize costs an average of N20,000.
- A bag of yellow maize sells for an average of N23,333, the same as recorded in December, while white maize of the same size still sells for an average of N23,167.
- A 50kg bag of Honey well and Mama Gold flour sells for N13,950 and N13,850 respectively, while a bag of Dangote flour sells for an average of N13,750.
- Horse fish (Kote) and Titus fish still sell for an average of N613 and 638 respectively across markets in Lagos.
- A 50kg bag of garri (Ijebu) still sells for an average of N14,375, while white and yellow garri sell for an average of N10,750 and N11,125 respectively.
- Amongst the list of food items that maintained their initial prices include: noodles, beverages, cocoa drinks, sugar, water, and juice.
- A 12.5kg cylinder of cooking gas is filled for an average of N3,975, while a 5kg cylinder is filled for an average of N1,750.
- Several customers were sighted at Mile-12 market negotiating and transacting with traders at different units of the market as the prices of most food items recorded a significant decline in price compared to the just-concluded year.
- In an interview with a tomato seller at Mushin market, Mr. Bala, explained that the decline in the price of tomatoes is due to seasonal fluctuations and increased supply of the food item.
- He stated that there has been a huge amount of harvest during this period, which has caused an increased supply of tomatoes coming from the north, and as a result driving the price of the commodity downwards. He however mentioned that oval-shaped tomatoes are not currently in the market, only round-shaped tomatoes were harvested and supplied to the market.
- The price of foreign rice has continued to witness a significant decrease in the past four weeks, largely due to the reopening of some land borders across the country. Also, the price of locally produced rice trickled down last week due to the new influx of foreign rice.
- According to our correspondent at Daleko market, Mrs. Oladayo, she explained that foreign-made rice is of two types for each of the brands, long and short. A 50kg of the long grain of rice sells for an average of N24,000 in the market, while the bag of short grains sells for an average of N24,000.
- Although, a 50kg bag of Big Bull rice sells for an of N24,000 some Nigerian made rice are now selling for as low as N18,000 and N17,000. She however warned that some of these brands are quite stony. For example, Zainab rice sells for an average of N17,000 at Daleko market.
- In an interactive session with an Onion seller at Mile-12 market, it was revealed that the reason for the significant nosedive in the price of onions was due to bountiful harvest towards the end of December.
- According to Muhammed, he said this is a period for onion harvest and it is only normal for the price to decline, although it seemed like a significant decline due to the irregular hike witnessed in the price of onions last year as a result of some string of events, such as insecurity, lack of harvest, etc.
- He further mentioned that the reduction in the price of onions is a very positive development for the year, considering the hardship experienced by many Nigerians during the past year.
- “We are happy that the price of onions and other food items have dropped in recent times and we hope it continues this way, because the lesser the price, the more customers are likely to buy,” He added.
- In a bid to understand the cause of the increase in the price of potatoes, Mr. Audu explained to Nairalytics that the price of potatoes increased due to the effect of seasonal fluctuations.
|Items||Brand||Unit||MUSHIN (7/1/2021)||DALEKO (7/1/2021)||OYINGBO (7/1/2021)||MILE 12 (7/1/2021)||Average||MUSHIN (17/12/2020)||DALEKO (17/12/2020)||OYINGBO (17/12/2020)||MILE 12 (17/12/2020)||Average|
|Bag of Rice||Mama Gold||10kg||4400||4200||4500||4500||4400||4600||4800||4800||5000||4800|
|Bag of Rice||Royal Stallion||50Kg||25000||24000||25000||24000||24500||26000||25500||26000||27000||26125|
|Bag of Rice||Rice Master||10kg||NA||4300||4300||5000||NA||4500||4750|
|Bag of Rice||Mama Gold||50kg||25000||24000||24500||26000||24875||26000||25500||26000||27000||26125|
|Bag of Rice||Caprice||50kg||25000||22000||24000||25000||24000||26000||25500||26000||27000||26125|
|Bag of Rice||Mama's Pride||50kg||23000||24000||24000||24000||23750||25500||25000||25000||26000||25375|
|Bag of Beans||Oloyin||50kg||20000||21000||20000||20333.333333333||20000||21000||21000||20000||20500|
|Bag of Beans||White||50kg||40000||45000||43000||42666.666666667||40000||43000||45000||43000||42750|
|Bag of Beans||Brown||50kg||32000||30000||30000||28000||30000||43000||38000||42000||43000||41500|
|Tuber of Yam||Abuja||1 Big Size Tuber||1000||900||1100||1000||1000||800||750||700||800||762.5|
|Tuber of Yam||Abuja||1 Medium Size Tuber||550||600||550||650||587.5||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||6000||6000||5500||5500|
|Basket of Potato||Sweet||Small Basket||700||750||725||700||700||700|
|Basket of Potato||sweet||Smallest Basket||400||300||350||400||250||325|
|Basket of Potato||Irish||Biggest Basket||25000||25000||25000||20000||20000||20000|
|Basket of Potato||Irish||Medium Basket||2600||2600||2500||2500|
|Basket of Potato||Irish||Small Basket||1700||1600||1650||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||600||650||600||600||612.5|
|Juice||5 Alive||1 litre||550||550||550||600||562.5||550||550||550||600||562.5|
|Tomatoes||Big Basket||round shaped||6500||6500||15000||15000|
|Tomatoes||Medium Basket||round shaped||3000||3000||8500||8500|
|Tomatoes||Small Basket||round shaped||2500||2500||5500||5500|
|Tomatoes||Big Basket||Oval Shaped||NA||10000||10000|
|Tomatoes||Small Basket||Oval Shaped||NA||6000||6000|
|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||26000||17000||21500||94000||97000||95500|
|Onions||Big bag||New Onions||20000||13000||16500||65000||65000||65000|
|Bush mango seed||(Ogbono)||1 big bag||105000||105000||115000||115000|
|Frozen food||Full chicken||Carton||14000||14500||14000||14000||14125||14500||14000||14000||14166.666666667|
|Frozen food||Chicken lap||Carton||13500||14000||14000||14000||13875||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.
Why buying Bitcoin in Nigeria is not cheap
It appears to have become much difficult for Africa’s most important crypto market to get Bitcoin at a fair value.
It’s no longer news that the recent CBN reminder restricting Nigerian financial institutions from Bitcoin and other Crypto assets have started to spur negative effect in the crypto industry when considering the cost of buying the world’s most popular cryptocurrency at Africa’s largest crypto market.
A recent study by Nairametrics revealed the flagship crypto asset, Bitcoin traded as high as 46% premium on some P2P exchanges and untraditional channels when compared to the use of Nigerian bank debit cards before the Crypto ban took effect, meaning the price of a bitcoin on such platforms was much expensive than its average price on other Crypto exchanges of around $49,000 at the time.
Crypto experts are of the bias that although the Central Bank’s recent directive does not criminalize ownership of Bitcoin, the circular will however make it difficult for them to process debit, credit card, and bank transfer transactions.
This is already increasing the complexity of a significant number of Nigerians that often use their local currencies in buying crypto assets. Many Crypto exchanges interviewed by Nairametrics spoke on the challenges many of its Nigerian users face buying Bitcoin at a fair value on the account that Nigerian leading financial payment providers such as Paystack, Flutterwave have arbitrarily cut ties with Crypto exchanges.
Adding more woes to young Nigerians adamant about buying the flagship crypto asset is the prevailing dollar scarcity in Africa’s leading economy which had often led many to buy the dollar at the black market rate of as high as N500, knowing fully well that all Crypto assets value are denominated in U.S dollar.
Adding credence to this, Rume Ophi a.k.a. Cryptopreacher, and Nigerian Crypto Educationist said;
“Nigeria’s bitcoin price isn’t consistent because it is pegged to the dollar (Usdt), which is a bit different from the parallel market, the one we call the black market or abokifx.”
He added weight to the exchange rate disparity on some Crypto exchanges and other channels Nigerians have been left with
“At the time of writing, Paxful an online peer 2 peer platform pegged 1 USDT to 475. This means you need 475 naira to get 0.0000004sat (the smallest unit of bitcoin is called sat). Whereas a black market vendor is also known as OTC will sell for 480/$,” Ophi said.
The effect of the CBN crypto ban is already breeding bad actors that are currently taking advantage of the high thirst for Bitcoin as Luno a leading African-based Crypto exchange in an email sent to Nairametrics sheds more light on the cost bitcoin buyers in Nigeria must bear;
“Pushing people underground also makes it easier for scammers to exploit Nigerians, and we are already seeing Bitcoin trade at huge premiums in the country as a result of the ban.
“Other companies have made the choice to find workarounds that are less visible for regulators – for example, Peer-2-Peer (P2P) trading. Our view is that P2P trading would go against the spirit of the CBN’s directive.
“We believe that the focus should instead be on demonstrating to the CBN that exchanges such as Luno have the necessary controls in place to address the concerns it has in relation to cryptocurrencies.”
What you should know
- Recall, the Central Bank of Nigeria had recently notified Deposit Money Banks, Non-Financial Institutions, other financial institutions against doing business in Crypto and other digital assets.
- In a circular dated 5th February 2021 and distributed to regulated financial firms, the apex bank of Africa’s largest economy warned and reminded local financial institutions against having any transactions in crypto or facilitating payments for crypto exchanges.
- Nigerian Apex bank further warned Nigerian financial stakeholders that any breach of this directive will attract serious regulatory sanctions.
Luno also spoke on the effect the CBN crypto ban will have on Nigerians in the long term, stating,
“Any attempt to restrict access to cryptocurrency does not protect Nigerians. It holds them back and leaves them vulnerable. It prevents honest Nigerians from taking advantage of all that cryptocurrency has to offer them.”
Bottom line: The rate of purchasing the most widely used Crypto asset in Nigeria is currently trading at a premium amid the Central Bank’s directive, suggesting it is getting much harder for Africa’s most important crypto market in getting Bitcoin at a fair value.
Nigeria’s long road to metering: Who bears the brunt?
While consumers remain unmetered due to the inefficiencies of the Discos, the Discos continue to charge outrageous estimated bills.
One of the many challenges facing Nigeria’s electric power sector is the issue of metering. From being a pre-privatisation problem, lack of metering has evolved to be a more sophisticated post-privatisation feature skirting the corridors of the Nigerian power sector for the last few years.
Statistics show that the number of unmetered customers across Nigeria has continued to rise. In 2016, a metering status report from the Nigerian Electricity Regulatory Commission (NERC) showed that about 3 million of the registered accounts of customers were unmetered. In 2017, this number grew as NERC reported that over 4 million unmetered customers. In 2019, a NERC report showed that over 5 million Nigerians were unmetered and this number has continued to rise.
In a bid to address the metering gap, in 2013 at the onset of the privatised electricity sector, the Credit Advance Programme for Metering Implementation (CAPMI) scheme was launched. The purpose of the scheme was to relieve the Distribution Companies (Discos) of the burden of financing the cost of the meters. As such it enabled the customer to pay for the meter upfront while the Disco amortised the cost through electricity supplied to the customer over a period of time.
The CAPMI removed the initial capital outlay for financing meters from the Discos and Discos were to provide the customer with a meter within 45 days of payment. However, the scheme failed to deliver on its objective. As noted by the then Minister of Power, Works and Housing, Babatunde Fashola in 2016, “Discos that collected money from their customers to procure and install meters at their homes have mostly failed to do so”. The CAPMI was eventually discontinued in 2016, leaving the sector with at least a 50% metering gap.
In April 2018, the Meter Asset Provider (MAP) scheme was introduced by NERC in a bid to address the same problem. Under this scheme, there were to be third party meter suppliers engaged by the Discos, effectively removing the burden of providing meters from the Discos. The Discos were mandated to engage MAPs within 120 days.
The scheme, unlike the CAPMI, ensures that the customer received a meter from the MAP without making any upfront payment, while the payment was sculpted into the customer’s monthly electricity tariff as an energy charge until it was fully amortized. The scheme also gave customers the opportunity to choose to pay upfront and get their meters installed within 10 days in return for energy credits. It turned out that more customers were taking the alternative approach rather than the original approach as the rollout was not very favourable to those who chose to go the energy charge amortization route.
The MAP scheme has not been as successful as was hoped, with Discos missing deadlines to engage MAPs and MAPs facing the challenge of increased import tariffs and lack of local manufacturing capacity. In October last year, the Central Bank of Nigeria (CBN) launched its National Mass Metering Programme (NMMP) with a view to funding the local production, and in some, cases importation of meters by meter providers and Discos. Perhaps this was a case of putting the cart before the horse, since the facility came after the Federal Government had revised electricity tariffs upward of a 100%, not considering the fact that a teeming number of customers who had subscribed under either the CAPMI or the MAP scheme were yet to receive meters.
With the addition of the NMMP facility to CBN’s existing N213billion Nigerian Electricity Market Stabilisation Facility (NEMSF) advanced to the Discos in 2014, significant progress is yet to be seen from this facility gathering. While it is hoped that the NMMP will help close the metering gap, the brunt of the lack of metering since the privatisation of the sector has always been borne by the consumers, many of whom have had to pay exorbitant prices for meters under previous schemes, with nothing to show for it.
Interestingly, while consumers remain unmetered due to the inefficiencies of the Discos, the Discos continue to charge estimated bills even after the February 2020 NERC Order that capped estimated billing. While the Order may have merely reduced incidences of outrageous bills, Discos continue to bill customers outrageous amounts.
It is unfortunate that almost a decade after the privatisation of the Nigerian electricity sector, the Discos are unable to tackle one aspect of Aggregate Technical, Commercial and Collection (ATC&C) losses and continue to put the burden of metering or estimated billing on the customer, added to the increased electricity tariffs the customer has to pay in spite of epileptic power supply. NERC must really sit up in mandating compliance by the Discos in seeing that the NMMP combined with the MAP meet the December 2021 deadline of closing the metering gap.
Nairametrics | Company Earnings
- FY 2020: Ardova Plc posts N1.86 billion Profit After Tax
Ardova Plc (formerly Forte Oil Plc) […]
- FY 2020: Africa Prudential posts N1.45 billion Profit After Tax.
Africa Prudential Plc released its […]
- Custodian Investment Plc posts N12.69 billion profit in FY 2020.
- 2020 FY Results: Nestle posts N39.2 billion, as earnings per share prints N49.47
Nestle Nigeria Plc released its audited […]
- 2020 FY: WEMA Bank posts N5.06 billion profit after tax as earnings per share prints at N13.1.
Wema Bank Plc released […]