The price of local rice, palm oil, brown beans, and bread amongst other staple food items surged across Lagos Markets. This is according to the recent food market survey carried out by Nairalytics, the research arm of Nairametrics.
The recent food price increase is despite the reopening of four more land borders by the president, Muhammadu Buhari, two weeks ago. Recall, that the Nigeria Customs Service (NCS) announced in April that the president had approved the reopening of four land borders; Idiroko in Ogun State, Jibiya in Katsina, Kamba in Kebbi, and Ikom in Cross River State.
However, despite the reopening of these land borders, which had been closed since 2019, the prices of food items in Lagos witnessed a significant surge in price.
Notably, a 5-litre gallon of palm oil now sells for an average of N6,050, compared to an average of N3,950 recorded two weeks ago. This translates to a 53.2% increase in just two weeks.
Also, a 50kg bag of Oloyin beans now sells for an average of N48,625 from the previous average of N35,700, indicating a price increase of 36.2%.
On the other hand, the average price of milo, garri, onions, egg and a few other food items recorded a decline in price when compared to the significant increase recorded in the previous month.
The price of a 450g size of Milo beverage dropped by 15.38% to sell for an average of N1,375 from the initial average of N1,625, while a 50kg bag of yellow garri now sells for an average of N12,800 as against an initial average of N15,450.
Meanwhile, the incessant hike in the price of the food items was attributed to the high cost of transportation and is currently threatening the survival of their businesses, as noted by some of the traders interviewed by Nairametrics Research team.
Highlights of the report
- A medium-sized tuber of Abuja yam now sells for an average of N875 when compared to an average of N763 recorded in the previous month. This represents a 14.8% price increase between 21st April and 6th May 2022.
- A 50kg bag of Mama gold rice increased by 13.58% to sell for an average of N33,875 in the week under review against the previously recorded average price of N29,825.
- Also, a 25 litres gallon of vegetable oil currently sells for an average of N36,925 indicating a 12.49% increase when compared to average of N32,825 recorded in the previous month.
- A loaf of bread that was sold for an average of N650, has now topped N800. In the same vein, the price of sardine bread increased from N650 to N800 in just two weeks.
- The rise in the price of bread is due to the 8.7% increase in the price of flour. A big bag of flour (50kg) increased by 8.8% from an average of N21,950 recorded in Apri to an average of N23,875.
- The price of a big bag of bush mango seed, also known as ‘ogbono’ rose by 10.78% to sell for an average of N170,500 compared to an initial average of N155,000.
- In addition, a medium-sized basket of pepper that was sold for an average of N21,000 in the previous month now sells for an average of N33,000.
- On the flip side, the price of a big bag of dry onions dropped by 8.17% to sell for an average of N18,825 as against an average of N20,500 recorded in the previous month.
- Refilling a 5kg cylinder of cooking gas now cost an average of N3,200 when compared to an initial average of N3,375, representing a decrease of 5.19%.
- A 50kg bag of white garri now sells for an average of N12,850 as against an average of N13,750 recorded in the previous month, representing a decline of N6.55%.
What market traders are saying
Mr Francis, a wholesale rice dealer at Daleko Market expressed grievance and displeasure towards the constant surge in the price of rice, which had been endured since the closure of land borders in 2019.
- He said, “Sellers who have access to custom-seized and released rice buy at N10,000 per 50kg while those who do not have such opportunity buy at N25,400 per 50kg, due to limited supply in the market for both local and foreign rice”.
- He also mentioned that the downside to these custom-seized and released rice is that most of them are past their expiration date so they only change the packaging bag and sell off at cheap rates.
- Similarly, Mrs Adaeze, a store owner of a big groundnut and palm oil deport at Oyingbo market, stated that the price of oil has gone up significantly due to extra fees that they have to pay in the markets where they get their supplies from.
- According to her, for every 25 litres of local groundnut oil, an extra payment of N1,000 is made to the market union, as a loading fee, which effectively affects the selling price.
- Mr Kelechi who just recently stocked up his shop with bags of rice, decried the rate at which they charge him just to transport his goods, highlighting that it is alarming. He revealed that often times the increment in the price of rice is influenced by several checkpoint payments to security agencies.
- Mr Kelechi added that for every checkpoint he encounters on his way from the market, he pays between N500 and N1,000 before he is allowed to continue his journey.
- “Another challenge is the thugs popularly called ‘area boys’ who are always waiting to collect their ‘share’ from me whenever I offload my goods,” he narrated.
- Mallam Abdullahi, a popular pepper seller at Mile 12 market complained that the price of a bag of pepper has doubled in price so far this year, thereby causing low sales turnover as customers have been discouraged by the inflationary pressure.
- Also, Mrs Bello who majors in the sale of beans and garri attributed the increase in the price of beans to the impact of insecurity on farmers in the northern region.
- “Cultivation of beans has reduced significantly due to the incessant attack on farmers in the northern part of the country, we have only been selling stored beans, which is limited,” she explained.
About Nairametrics Food Price Survey
Nairametrics Food Price Watch is a bi-monthly 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, and Mile 12 Market.