“When we started this business in February 1994, the prices for commodities at the time were okay. My husband and I started with just N15,000 but without a minimum of over N1 million capital, I don’t think someone can start a comfortable foodstuff business now,” a trader said.
Standing behind a parked vehicle in front of her shop loaded with some food commodities, 58-year-old Nkiruka Romanus wipes her face with the back of her palms to clean a simmering sweat.
It was a hot Saturday afternoon in late January and Mrs Romanus recalled how she and her late husband started the foodstuff business with N15,000 in 1994.
Mrs Romanus, popularly known as Mama Chikwado, has been in the business of selling food items such as beans, rice, flour, and sugar among others at the Olojudo market, Ido Ekiti, Ekiti state, for 30 years. With proceeds of her business, she has sustained her family over the years, especially after the death of her husband.
But in recent years, she has recorded hard times as sales dropped significantly amidst a worsening economic landscape.
“The goods in the vehicle are worth over a million naira, but see how small it is looking. The situation is becoming worrisome day by day. I remember in those days with just N100,000, you could get a truck loaded with goods and my shop would be full of goods and I would even have to store some in the warehouse,” Mrs Romanus told PREMIUM TIMES.
“When we started this business in February 1994, the prices for commodities at the time were okay. My husband and I started with just N15,000 but without a minimum of over N1 million capital, I don’t think someone can start a comfortable foodstuff business now. This is because prices of things are going up every day,” she said.
The increasing cost of food commodities in Nigeria has become a serious cause for concern in recent years. The situation became more complex after President Bola Tinubu announced the end of fuel subsidy payments during his inauguration as president on 29 May 2023.
The ripple effects of this policy became more evident in the skyrocketing prices of goods and services as well as the transportation costs across the country, with ripple effect on food inflation.
Nigeria’s annual inflation rate rose to 29.90 per cent in January from 28.92 per cent in December 2023.
The January 2024 headline inflation rate showed an increase of 0.98 per cent points when compared to the December 2023 headline inflation rate, according to the National Bureau of Statistics (NBS).
The NBS said on a year-on-year basis, the headline inflation rate was 8.08 per cent points higher compared to the rate recorded in January 2023, which was 21.82 per cent.
The NBS also noted that the food inflation rate in January 2024 quickened to 35.41 per cent on a year-on-year basis, which was 11.10 per cent points higher compared to the rate recorded in January 2023 (24.32 per cent).
The bureau said the rise in food inflation was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, oil and fat, fish, meat, fruit, coffee, tea, and cocoa.
But in an attempt to boost agricultural productivity and reduce the high prices of major staple foods in the country, Mr Tinubu in July last year declared a state of emergency on food insecurity.
“Mr President is not unmindful of the rising cost of food and how it affects the citizens. While availability is not a problem, affordability has been a major issue for many Nigerians in all parts of the country.
“This has led to a significant drop in demand thereby undermining the viability of the entire agriculture and food value chain,” then presidential spokesperson, Dele Alake, said in the statement announcing the government decision at the time.
Worsening Dynamics
As government policies begin to influence socio-economic realities, a food commodities market check conducted by PREMIUM TIMES across several markets in different states of the country showed that the situation has become more complicated.
Nigerian households and business owners who spoke with this newspaper lamented how the continuous rise in prices of food items has worsened their economic conditions in recent months.
Mrs Romanus said the steady rise in the price of food commodities has affected her business negatively.
“Things are getting worse. The gap is excess. I can no longer restock my shop the way I used to do back then. And also I must say that my customers’ purchasing power has reduced. I don’t know where we are heading in this country,” she said.
Pointing at a 50 kg bag of sugar, she said: “Look at this bag of sugar that was sold for N55,000 last year November, it’s now N85,000 while in the 90s we sold a 50kg bag for around N2,500 to N3,000.
“Also, a 60 kg bag of honey beans known as oloyin is now N120,000 as against the previous price of N80,000. A rubber of honey beans which contains 10 milk cups is now N2,500 from N1,800 that it was sold before.”
She explained that a 50kg bag of foreign long-grain rice is now sold between N72,000 and N80,000 as against N62,000 it was previously sold while a 50kg bag of Nigeria rice is sold between N61,000 and N65,000 as against N47,000 it was sold before. And 100 kg of white beans (small) is now N120,000 from N75,000.
For flour, she further explained that between November to December last year, 50kg diamond flour was N40,000 and it has also increased this February, peaking at N52,000. While a 25-litre of vegetable oil sold at N36,500 now sells between N52,000 and N54,000, a bottle of 75cl is sold for N1,800 as against N1,400 it was previously sold.
“As I earlier said, this is no longer funny again. Almost all the foodstuff you ask for in the market has more or less doubled over the past month.
“The prices are highly unstable and are affecting people’s pockets. I know the government has been intervening but they need to do more in these continuous price increases,” she said.
Another trader at the market, Chinedu Okoro, also lamented the low turnout of customers.
“This is now a normal thing for us in this country. Sometimes when my phone rings like this and if the call is coming from my goods supplier I will just tell myself that something has added money again. This is because it is now a norm that each time any of them (supplier) calls, it is either they want to tell me that goods have increased from what I bought last,” Mr Okoro said.
“A carton of golden penny spaghetti was sold for N8,000 mid-last year but getting towards the end of last year to now it is now N11,500. A carton of Crown spaghetti sold for N11,800 is now N12,650
“While other products like Honey Well, Aunty B, mama’s Pride and so on sold for N6,500 now going between N11,200 and N11,250,” he said.
Like Mrs Romanus, the food inflation crisis has affected Charity Ezeokoli, a foodstuff seller in Ifaki Ekiti. “The situation is not a pleasant one at all,” she said.
“I am a mother of three and how can I take good care of my children when my business is not moving well? Many of my customers who buy things in quantity cannot afford to do so again.
“The way food commodities are going up, prices may likely never come down to the way they were before. I just hope we are not going into an era where it will be so hard for the less individual to get what to eat,” she added.
Crisis
Last November, the Food and Agriculture Organisation (FAO) said at least 26.5 million Nigerians in Borno, Sokoto and Zamfara states as well as the Federal Capital Territory, Abuja, may face a food crisis between June and August 2024.
FAO said the analysis was conducted in 26 states and the FCT to ascertain the food security situation and make projections for the future.
The organisation said the current cycle is happening after an unusual lean season which witnessed several shocks, ranging from persistent insecurity situations like insurgency and banditry.
It listed other challenges as natural resource-based conflicts, high cost of food and agricultural inputs due to high inflation and severe dry spells in some states immediately after the onset of rains.
Unstable prices
In Abuja, the federal capital territory, residents also complained about the high prices of food commodities and other essential goods.
An Abuja-based civil servant, Hauwa Musa, said: “The prices of things are incredibly insane. When you buy today and go back tomorrow the price has changed.
“You cannot predict the prices and for most of us with families you are expected to not just provide for yourself but for the children too.
“I went out to buy an egg some days ago and I noticed that the egg that I used to buy for N100 now goes as high as N130 per one. The government should look into the plight of the masses. The minimum wage should also be added.”
Another Abuja-based civil servant, who simply identified herself as Mrs Ogunmoroti, told this newspaper that the present situation had made life unbearable for her household.
“The government needs to come to our aid as soon as possible. Everything is getting tough every day and I must tell you, it has been a hard time for my household.
“A few days ago, I went to the market to buy some foodstuff so when I got to the meat seller, I told him I needed meat for N500 and the meat seller bluntly told me that there was no meat for N500. I mean no more N500 meat it is now from N1,000 upwards. This is increasingly annoying,” Mrs Ogunmoroti said.
At Wuse Market, Nura Bala, who sells provisions, said his customers are complaining about the hike in the price of goods.
“I have two wives and six children and we all survive on what I make daily. Customers are complaining of price hikes and we too are complaining because of the prices we buy from suppliers.
“The gain is not like before and there’s no market like before. Things have gone from bad to worse. All I can say is may Allah help us,” he said.
In the same market, Muhammad Ali, who sells beans, noted that “Right now, beans are very costly in the market. The problem is not just from the market but from the main farmers. Beans started rising last year and it has continued rising still.”
At Lugbe, a commercial taxi driver, who identified himself as Segun said he had relied on what he called a coping strategy to put food on the table for his family.
“Overall, the situation is worsening. The rise in the prices of food is my deepest concern because I have three children but their mother is no longer with me. And I must take good care of them but the significance at which things are moving these days is affecting my children’s well-being.
“But I am relying on what I called a coping strategy to survive,” he said.
At the AMAC market, Lugbe, in Abuja, Baba Aisha, a meat seller, said prices of beef have soared against the price it used to be.
“Our customers are complaining that meat is costly now. And we, the meat sellers, complain about not seeing cows to buy. If you eventually see, it is very costly. So it is not our fault.
“I sold a kilogram of meat (beef) for N3,000 here last year. Now, a kilogram is N4,000. We are praying for the president that he could see Nigeria’s problem and solve it permanently, especially the way things are moving now,” he said.
A market survey also conducted by this reporter in Gosa Market, one of the major Friday markets in the Federal Capital Territory, showed that the price of tomato, onion and yam had skyrocketed.
A tomato dealer at the market, Saifullahi Ayagi, said “We are in the season of harvesting tomatoes, instead of tomato prices decreasing, it is going up.
“When things were good, I sold a big raffia basket of tomatoes for N7,000. But the basket is now N30,000 and above as I speak,” he said.
In some major markets in Abuja, a mudu of white garri that used to sell for N400 is now between N600 and N700, while a mudu of yellow garri sold for N600 is now between N800 and N900. A crate of egg that sold for N3000 now sells between N3,800 and N4,000 depending on the size.
Anambra
At Relief Market in Onitsha, Akumjeli Adaego, who sells provisions, said that the price of 70g of instant noodles (Indomitable) rose from N3,000 to between N7,000 and N8,000 while 120g Indomie noodles (Superpack) now goes as high as N11,300 as against N4,500 it was previously sold some years back.
Veronica Ugwoke, a customer who was at Mrs Adaugo’s shop when this reporter visited said some people cannot afford to buy what used to be the cheapest food again.
“Indomie that is the cheapest food that children enjoy is now very costly too. The super pack is now above N11,000 from what it used to be. So how do they want people to survive if it is hard to buy a carton of indomie too,” she asked.
“I can still remember when I used to buy a 70g carton of Indomie noodles for N1,500 but just price it now, you will see that it has gone up to as high as N8,000,” she added.
At Ochanja market, a yam seller, Chiasoka Ejikeme, said “100 pieces of yam sold for N75,000 in December is now N100,000. You might be surprised by the price increase, that’s how we see it also,” she said.
At the same Ochanja market, rice traders said the prices of rice vary depending on the type.
Ijeawele Echezonanna said: “The prices of rice differ. There is one we call Nigeria’s rice and the foreign rice.
“Nigeria’s rice before was sold for N50,000 and now it is N69,000. Normal foreign rice is sold between N72,000 and N75,000 depending on the manufacturer from N50,000 that it was before. A full bag of iron beans was sold for N110,000 as against N89,000 a month ago,” she said.
Lagos
Within the Ibeju-Lekki axis of Lagos State, traders said a four-litre (paint) container of garri sold for N1,500 before now costs around N1,800 and N2,000.
Also, they said a 50kg bag of foreign rice that was sold at the rate of N55,000 now costs N75,000. A four-litre (paint) of garri now goes as high as N2,500 as against N1000.
A pack of Spaghetti of N500 now costs between N700 and N800, while 75 cl of palm oil sold for N1,000 before is now sold for N1,500.
A 5-litre of groundnut oil now sells for prices ranging between N6,000 and N8,000, from its previous price of N5,100 while a kilogram of ice fish sold for N1,800 before is now N2,100.
Katsina
A PREMIUM TIMES survey revealed that the situation is not different in Katsina and other states in the North-west as prices of commodities have risen significantly.
“I can’t imagine the situation but it’s real,” Abdullahi Jani, an editor with DCL Hausa online, told PREMIUM TIMES in Katsina. “The way prices of things are increasing is scary. A crate of eggs that we normally bought for N2,000 some weeks ago is now between N3,000 and N3,500. Everything has changed,” he said.
A trader at the popular Steel Rolling Roundabout in the metropolis, Anas Dardisu, said the prices of yam and plantain skyrocketed because of the prices of fuel.
“We increase prices because we always have to pay more for delivery. Last week, a yam we bought for N900 is now bought for N1,200. We have no option than to also increase because aside from the delivery payment we also have people that will offload the commodities,” he said in Hausa language.
A teacher, Rukayya Shehu, also lamented the high price of commodities in the state and the country. She said for the first time since she got married, the foodstuff in her house are all finished and her husband is yet to buy more.
“I understand the situation because I also contribute to the upkeep of the house. Even to fuel his car, he spends about N80,000 every month, it used to be around N30,000 or less. That’s how bad the situation is. We’ve reduced the items we buy, cutting down on things but it’s still bad,” she said.
Data Insights
Data compiled by Picodi, an international e-commerce organisation shows that the average Nigerian household spends about 59 per cent of its income on food. It was considered the highest in the world, according to the report published in August 2023.
Picodi researchers analysed statistical data from 105 countries and calculated how much money people spend on their groceries worldwide. Nigeria ranked 105th out of 105 countries.
The report said food and non-alcoholic beverages make up 59 per cent of Nigerian’s spending on goods and services.
The rise in the prices of key food commodities is mostly caused by insecurity, high cost of transportation of products, climate change and the instability of the exchange rate of naira, experts said.
Speaking to PREMIUM TIMES, Muda Yusuf, director of the Centre for the Promotion of Private Enterprise (CPPE), said inflation has a major negative impact on the poor and middle-income earners in the country.
Mr Yusuf note that factors responsible for inflation are obvious, the first being insecurity, which prevents many farmers from accessing their farmlands.
“The second point is the exchange rate which affects almost everything. Whether foods are produced locally or imported. This has become a major factor because some have to be imported like noodles, they have imported contents,” Mr Yusuf said.
“Then you also have the issue of transportation costs. This is also a major reason affected by the cost of diesel and premium motor spirit (PMS). You know all these produce have to be moved from one location to the other.
“Climate change is a big problem. All the farmlands that are normally hiring people. The farmers/herders crisis is also affecting food production as well. There’s also the international dimension as well. The cost of grains and energy arising from the Russian/Ukraine crisis affects inflation globally,” he said.
He added that the way forward is to tackle those causes as identified.
Also speaking with PREMIUM TIMES, the national president of the All Farmers Association of Nigeria (AFAN), Ibrahim Kabiru, said insecurity remains at the heart of food crisis in the country.
“Firstly, the purchasing power of our currency is a very big issue for us and there is also the scarcity of food. The reason why we have food scarcity is because of insecurity that prevents the farmers from going to the farm to produce appreciably well,” he said.
Mr Kabiru said the concerns are worsened by the actions of hoarders and middlemen who divert such food items before getting to the markets.
“If you noticed from the time that the CBN raised prime Anchors in the Anchor Borrower programme from 2016 we have never had low prices during harvest,” he said.
Mr Kabiru said Nigeria has always recorded low prices during harvest because farmers sell off what they have to buy things that they do not have and they sell at a low price.
“So, essentially now, I mean at present, what we have in the system is that the farmers are just getting value for what they produce. They are saying that they are basking in making good money from what they produce. So, reporting will be that there is food inflation which is not good for the country but the only way to arrest the situation is to scale up productivity,” he added.
PREMIUM TIMES
