Nigeria recorded an average of about 28.2 per cent increase in the prices of major food items consumed in many households in the country in the last year, a PREMIUM TIMES’ market survey has shown.
A market check conducted on food prices by this newspaper across nine states in the country shows that the prices of food items have been on a steady rise in the last 12 months.
The food items monitored include yam, rice, beans, vegetable oil, palm oil, tomatoes, pepper, maize, onion, and millet.
Others are noodles, spaghetti, sugar, wheat flour, meat, garri, wheat, and guinea corn.
Sky-high Inflation
Nigeria’s inflation has remained at double digits since 2016, with a significant impact on household spending, even as governments across states struggle with backlogs of salaries and pensions.
The nation’s annual inflation rate rose to 22.79 per cent in June from 22.41 per cent in the previous month, according to the National Bureau of Statistics (NBS).
The statistics office said the June 2023 inflation rate showed an increase of 0.38 per cent points when compared to May 2023 headline inflation rate.
The NBS said on year-on-year basis, the headline inflation rate was 4.19 per cent points higher than in June 2022, which was 18.60 per cent.
The NBS noted that food inflation rate quickened to 25.25 per cent in June from 24.82 per cent in May.
It said the rise in food inflation on a year-on-year basis was caused by increases in prices of oil and fat, bread and cereals, fish, potatoes, yam and other tubers, fruits, meat, vegetable, milk, cheese, and eggs.
Similarly, in its latest jollof index report, SB Morgen, a geopolitical intelligence platform, disclosed that the cost of preparing a pot of jollof rice, a popular delicacy among Nigerians, rose from N9,917 to N10,882 from September 2022 to March 2023; representing a 9.73 per cent increase.
SB Morgen’s report said Nigeria is facing a persistent food crisis that is continually aggravated by insecurity, poor policies, adverse weather conditions, and international events such as the ongoing Russia-Ukraine war.
It said the food crisis stems from various factors, including instability in food-producing regions, inadequate storage infrastructure, and a lack of agricultural commercialisation.
Policy Effects
As the increase in the prices of food and other essential items continues to bite harder, the removal of petrol subsidy and other policy interventions from the Nigerian government have worsened the situation.
President Bola Tinubu had, in his inaugural address on 29 May, announced the removal of petrol subsidy. Following the announcement, the Nigerian National Petroleum Company Limited (NNPCL) directed its outlets nationwide to sell fuel between N480 and N570 per litre, an almost 200 per cent increase from the initial price below N200.
The hike immediately triggered an increase in transportation fares and prices of goods and services, including foodstuff, by various percentages.
Inflation has remained high in Africa’s largest economy, prompting the apex bank to hike interest rates to their highest levels in nearly two decades.
In an aggressive push to contain the nation’s inflationary pressure, the Central Bank of Nigeria, in May, raised its benchmark lending rate to 18.5 per cent.
On 13th July, Mr Tinubu declared a State of Emergency on food insecurity to tackle the increase in food prices.
He also directed that “all matters pertaining to food & water availability and affordability, as essential livelihood items, be included within the purview of the National Security Council.”
But as the government policies begin to impact socio-economic relaities, food prices continue to soar high.
Market insight
Some traders who spoke with PREMIUM TIMES expressed concern over the steadily high prices of foodstuffs, urging the new administration to act fast to curb the level of the dilemma of the citizens.
PREMIUM TIMES’ nationwide survey showed that on the average, the price of 50-kilogramme of sugar that previously sold between N30,000 to N32,000 now sells between N38,000 and N40,000.
A 50-kilogramme bag of foreign rice (long grain) sold between N35,000 and N37,000 is now sold for N40,000 – N42,000 while a 50kg bag of a short grain of foreign rice that was sold between N22,000 and N23,000 is now sold for N34,0000 – N37,000.
A 50-kilogramme bag of honey beans (oloyin) rose to N60,000 against the previous price of N56,000, just as 1.5-kilogram of white beans (popularly called a mudu) rose from N800 to N1,000.
A 50-kilogramme bag of yellow garri sold between N22,000 and N24,000 is now N27,000 while 50-kilogramme of white garri rose to N20,000 against the previous price of N18,000.
Also, a kilogramme of beef previously sold between N2,600 to N2,800 now sells between N3,000-N3,200 while a kilogramme of goat meat rose from N3,000 to N3,200.
Traders Lament
At the Olojudo market, Ido Ekiti in Ekiti State, a foodstuffs seller, Francisca Okonkwo, lamented the current state of food prices and how the surge in prices has worsened over the years thereby affecting the purchasing power of traders and consumers.
“When I think of how things, especially food items are going up in this country, I ask myself a question and the question is ‘Is it still possible for these things to come down again?’
“Unlike before, our customers now have to reduce their demand due to the drop in their purchasing power. Things have suddenly gone up and this has resulted in slight trading activity in the market.
“I can tell you that the amount I used to buy 70 bags of rice two years ago, now, I cannot get that quantity with that amount again and this is affecting my ability to stock up my shops,” she said.
Mrs Okonkwo said that a 50kg bag of foreign rice (long grain) sold between the range of N35,000 – N37,000 last year is now sold for N40,000 or N42,000 per bag.
Like rice and beans, 50 kg of wheat flour used in bread making and other confectionery products sold for N25,000 last year is now sold between N31,000 and N33,500, she said.
Kingsley Chikwado, a trader at the same market, said some items are increasing while some have remained slightly stable for some time.
“A 400g golden penny spaghetti was sold for N6,250 last year and today it is N6,350. While 500g last year was N6,700 and today is N6,800. These items rose with N100 different from last year,” he said.
“A 10kg bag of mama gold semolina now is N6,400 and for a golden penny is N6,700 but last year both items were sold for the same price at N6,500.
Mr Chikwado said he sold 25 litres of vegetable oil for N30,000 last year but it is now sold for N32,500.
A trader at Ifaki Ekiti, Silas Aladimaka, attributed the increase in the prices of garri to the high cost of production and insecurity across the country.
“Farmers no longer go to the farm again because of insecurity. Last month, I called my garri supplier to bring garri for me and she said she doesn’t have any. I was so surprised because this is the same woman that has been supplying me with this garri for the past six years.
“When I asked her what happened and she said, herders destroyed her cassava farm. This is part of the insecurity we are talking about in the country.
“A 50kg bag of yellow garri sold at the rate of N22,000 – N24,000 is now sold at the rate of N27,000. While a 50kg bag of white garri that was sold for N18,000 is now sold at N20,000,” Mr Aladimaka said.
Ogun
At Alapara Market in Akute, Ogun State, Ibrahim Garba and Muritala Ibrahim said sales have declined since the removal of the fuel subsidy which affected foodstuff distribution and logistics.
Mr Garba explained that before the policy was effected, a bag of rice sold for N30,000 but the price has since jumped to N40,000. He said they have had to also increase the selling prices of measured rice.
Muhammed Saliu, a yam seller in Akute, said prices have doubled and the cost of transportation has increased. According to him, a tuber of yam that sold for N500 is now N1000.
“We buy 100 pieces, but we calculate based on each price and size,” he said.
“We are selling to eat, we hardly get enough profit. Sometimes N50 on one yam, some we get N100, N200 gain, while we sell some at the same price we got it just to move fast.”
At Agege Garage in Akute, a pepper seller who identified himself simply as Alhaji Mustapha, said he had to employ strategies to sell in order not to run at a loss. Mr Mustapha said a bag of pepper which used to cost N30,000 is now N80,000 from Northern Nigeria where they buy from.
“If we buy, we must know how to sell to be able to gain our money back. We buy from the North and the cost of transportation has also doubled, like from N2,000 now N4,000,” he said.
Abuja
In Abuja, the federal capital territory, residents complained about the high cost of food items in the open markets, amid increase in transport fares.
Doris Nwafor, a mother of three, lamented how difficult it is to stock up her kitchen with foodstuff, adding that prices of basic food items or beverages such as spaghetti, milk, milo, bread and eggs have all increased significantly.
“Years back, if I go to the market with N10,000, I get something good with the money but now with my N10,000, I find it so hard to even buy enough foodstuff.
“My child loves noodles so much, but imagine a carton of a small indomie that used to be around N1,500 is now N3,000. You can see that it has now doubled in price.”
At Lugbe in Abuja, Baba Aisha, a meat seller, said prices of beef have risen.
“Some customers think we deliberately put money on the beef. But it is not so. The price we used to buy big cows now is not the same as what it used to be,” he said.
“As of last year, or even some months back, we sold a kilogram of beef between N2,600 to N2,800 but now a kilogram of beef sells between N3,000 and N3,200. A kilogram of goat meat which was sold at the rate of N3,000 last year now costs N3,200.”
The continuous increase in the price of food items in the country was also attributed to a decline in farm labour due to a high level of insecurity, climate change and seasonal variations.
A tomato/pepper trader at the same market, popularly known as Bonanza Bonanza, said the cost of pepper, onions and tomatoes are often fluctuating as time and seasonality affect their prices.
“Before, a small basket of onions was N1,100 and now it is N1,300. While a small basket of tomatoes is N3,000 from N1,500 -N1,800 sold before,” he said.
Kehinde Femi, who sells foodstuffs within Zone 6, Lugbe, said: “It’s not surprising again the way Nigerians suddenly get used to the high cost of things in the market.
“These days, prices of things vary in the market. If you come and buy rice or beans for a certain amount today, you might not get it at that amount tomorrow,” Mr Femi said.
“A bag of white garri now is N21,000 and we have 60 mudu inside the bag (a mudu is equivalent to about 1kg). Last year, we sold a bag for N15,000.”
A trader at the Kubwa Village Market, Ebuka Ugo, said 75cl of palm oil that sold at the rate of N900 last year now sells for N1,000.
“A mudu of iron beans (white) was N800 before but now is N1,000.” For rice, Mr Ugo said, a mudu now is N1,200 from N1,000 sold some months back.
“A litre of vegetable oil is N1,700 from N1,600 sold last year,” he said.
Kano
At the Dawanau International Grains Market, Kano, PREMIUM TIMES found that prices of grains increased from what was obtainable before the fuel subsidy removal.
A 100-kilogramme of maize that sold for N28,000 before the subsidy removal now costs N33,000, just as 100-kilogram of beans that sold for N36,000 now sold for N42,000.
However, the price of a 100-kilogramme bag of groundnut that was sold for N82,000 fell to N75,000.
PREMIUM TIMES’ findings also revealed that a bag of sorghum that was sold for N21,000 was priced at N30,000, while a bag of soya beans that sold for N30,000, now costs N32,000. However, a 100 kilogramme of rice that was sold for N76,000 was sold for N70,000 and traders attributed the fall in the price of rice to the harvest period.
A grains dealer in the market, Dan-Asabe Mahmud, told PREMIUM TIMES that the fuel subsidy removal did not make much impact as expected because grain dealers in the market are using heavy trucks powered with diesel to convey their goods.
He also attributed the price increase in the market to seasonal concerns, especially during the rainy season.
“Normally in this period, we used to experience a hike in the prices of grains because farmers are returning to the farm after rainfall and the market does experience a dearth of goods, which allowed hoarders to sell their hoarded goods at a price they fixed which is usually higher,” he said.
The Dawanau market is populated by traders who deal with grains suppliers from neighbouring states like Kaduna, Katsina, and Jigawa and it last witnessed an unprecedented hike in the prices of grains when the subsidy on gas was removed, Mr Dan-Asabe said.
“Before the subsidy removal on gas, we were transporting a 100 kg bag of maize, sorghum, millet, and others at the cost of about N400 per bag but now is almost N1,000 per bag and we have to consider all other logistic costs before fixing the price per bag,” he added.
Anwar Ibrahim, another grain seller at the Tudun Yola area of Gwale Local Government Area, said the subsidy removal impacted his business following the hike in transporting goods from the rural area of Tudun Wada Local Government Area to the town.
Mr Ibrahim said the 100 kilogrammes of rice that sold at N66,000 rural in areas is now N74,000 at his retail outlet in Kano due to the cost of transportation and other logistics to the town.
The cost of transporting 100 kilogrammes of grains from Tudun Wada Local Government Area to Kano was N900 per bag, but after the subsidy removal, it shot up to N1,200 per bag, he said.
Katsina
In Katsina State, PREMIUM TIMES survey showed that prices of grains, vegetables and other commodities increased following the increase in fuel price.
A grain dealer in the Mai’Adua border market, Sulaiman Tunau, said drivers now charge N1,200 per bag for transport as against N500 that was the fare before the fuel subsidy removal.
“For example, when you buy grains in bulk from Dandume to Mai’Adua market, you will pay N1,250 per bag. Think of other things you need to solve, you will see that we are mostly doing this business to keep ourselves busy,” he said.
Mr Tunau frequents most of the popular weekly markets in the state for his business, including Mai Adua, Dandume, Mashi, Sheme, Danja and Dankama.
He said though prices differ based on the location of the market and the produce, foodstuff prices have all increased.
“A 100kg bag of millet sells at N25,000 to N33,000. Local rice was sold at N44,000 but now sells at N57,000. A 100 kg bag of wheat has also increased from N31,500 to N38,000,” he said.
A perishable goods wholesaler on Barhim Estate Road, Abdulkarimu Kabir, said prices jumped because of logistic concerns. “We have no other option than to increase it because we buy it from farms. They (farmers) use fuel to power their generators and we also pay commercial vehicles to bring the produce to our shops,” he said.
Anambra
At Ochanja Market in Onitsha, Anambra State, Afamefuna Chibueze, who sells provisions, noted that the price of a carton of 305g size of Indomie noodle, generally known as Belle-Full, increased to N3,800 from N2,500.
The 200g carton of Indomie noodles (Hungry Man) also sells for an average of N4,000 from N3,000, just as a carton of noodles (70g) rose from N1,800 to N3,000, he said.
At Ose Market, Ogadimma Eze, a yam seller, said yam is usually costly during the mid-year period but there will be price reduction towards November to December.
“100 pieces of yam sold between N30,000 – N40,000 before is now N60,000 and a tuber of yam now goes as high as N600 – N1,000,” she said.
Akwa Ibom
In Uyo, the price of four litres (paint container) of garri increased to N1,300 from the N1,000 that was sold last year, and a bottle (75cl) of palm oil and groundnut oil now sells for between N700 and N1,100 from N600 and N900, respectively.
Also, four litres of beans now sell at N2,700 against last year’s price of N2,300, and the price of rice in the same quantity grows to N2,300 from N2,000 that was sold last year.
Interestingly, the survey showed that the price of one crate of eggs that was sold at N2,100 – N2,200 last year fell to N2,000, while the price of four litres of crayfish remains unchanged (N4,000 per container).
According to Mfonobong Joseph, a private school teacher, the increase in food prices is a major problem for her family, considering the small income she earns monthly.
“These days, you cannot predict the amount of money you want to spend in the market because the price of food items increases every day and it is affecting me.
“I work in a private secondary school and my salary is low. With this increase every day, we are facing a lot of problems here every month,” Mrs Joseph said.
At Eke Imeoha in Onueke, Ebonyi State, the price of a tuber of yam (medium size) that was sold at N400 rose to N600 while palm oil rose from the rate of N150 per cup (milk) to N300. A paint (4-litre) of white garri that cost N800 is now N2,000, while a 22kg bag of local rice that was N12,000 before rose to N16,000, multiple traders at the market said.
Lagos
At the Mile 12 International food market in Lagos, Arinzechukwu Odera, a foodstuff seller, said the prices of food commodities vary depending on the location.
“I know things are going up now, but it still depends on the location you are in. A 50-kg bag of foreign rice that I sold at the rate of N32,000 to N33,000 is now N38,000 – N40,000.
“For oil, a 4-litre of power oil is now N3,800 from N3,000 it used to be. While a 25-litre of vegetable oil sold for N30,000 before is now N35,000,” Mr Odera said.
Another resident of Lagos, Ijeoma Onyekachi, said: “We are already used to this. Do you know that a bunch of plantains that I used to buy for N1,000 is now N2,500 and a crate of eggs that was sold for N1,700 to N1,800 is now N2,000?”
Farmers Union Speaks
The president of the Soybean Commodity Association, Ayodele Uwala, said insecurity has been a major factor driving the increase in the price of food commodities in the country.
“Because of the effect of insecurity, farmers in the northern part of the country could not go to their farms again.
“You see, with agriculture we can solve most of our problems. We can produce enough not only in soybean but in other commodities like rice, beans, maize among others and this will help the economy but the sector now is faced with insecurity,” Mr Uwala said.
Also speaking with PREMIUM TIMES, the national president of the All Farmers Association of Nigeria (AFAN), Ibrahim Kabiru, said there are many reasons why food prices have remained steadily high for quite a while.
“The factors that pose turbulence in food prices have gone and given way to many other things now. Certain things are happening that are making the prices remain steady for quite a while,” Mr Kabiru said.
He added, however, that the flooding that swept through farming communities in the country last year also caused a shortfall in production and that gave rise to scarcity and high prices.
“Secondly, the exchange rate that was going up before the currency was redesigned was also responsible for some inflation. Then the currency redesign itself is also a factor.
“As my experience goes, prices in metropolitan Lagos and Abuja are not comparable to prices in Katsina for instance or Gombe. This is because those areas are high economic centres and they are not centres for production; so people bring in food items to sell and these people are generally middlemen and not farmers and they incur expenditures in transporting them too.
“In urban areas, food prices are high because you have to pay for everything. For example, you have to pay for a place where you showcase your goods. I have a bakery in my village, the size of a loaf of bread that I sell for N500 is sold for about N1,000 in Abuja. Can you now see the difference,” he said.
He explained that transportation and cost of production are also major factors affecting the prices of food.
“Transport is quite high because of the high price of diesel and the cost of production also is another factor because fertilizers are higher and other farm inputs are also costly.”
He called on the government to address issues of insecurity, which impacts production in the country, farm inputs and other challenges in order to address food insecurity and sustainability.
PREMIUM TIMES
