- Food items continue to soar in major markets across Lagos state despite reports by the National Bureau of Statistics (NBS) that the nation’s economy has experienced a steady growth in its first quarter
- Findings by NAIJ.com at Oyingbo market, Lagos, showed an increase in the prices of basic food items like rice, beans, egusi, ogbono and perishable products
- Some traders in the market attribute the rise in the cost of items to the economic situation of the country while others blame the price increase on the fluctuation in foreign exchange rate, weather condition and cost of agricultural inputs
- Meanwhile, buyers at the market decry low income leading to a reduction in their purchasing power
This is a challenging period for traders as well as buyers in major markets across Lagos state, as they now witness poor market conditions despite a report by the National Bureau of Statistics (NBS) that the nation's economy has experienced a steady growth in its first quarter.
For Muslim faithful, Ramadan is a holy period and it is considered a time to get close to God and abstain from immorality. In light of this, a visit to Oyingbo market, Lagos showed that there is a drop in patronage as some traders complained that they no longer make profit as they used to.
Side view of the new ultramodern Oyingbo market complex, Ebute Metta, Lagos. Photo credit: Esther Odili
The prices of tomatoes, rice, beans, egusi, ogbono which became expensive at the turn of the season, have not witnessed any reduction in most markets in Lagos state as confirmed by NAIJ.com at the market.
The survey exposed the increase in the price of some basic food items. Buyers lament increase in the cost of the items just as traders decry the high cost of purchase which they explained is seriously affecting their profit margin.
Food items dealers in the market have attributed the rising cost of some commodities on the increase in the cost of transportation in the state.
The hike in transportation fare, has led to the increment in the price of some commodities in the market. Photo credit: Esther Odili.
A trader, Mama Amaka, said the prices of goods increased because of the high cost of transporting the products from the source to the market.
She said: “The cost of goods witnessed about ten percent increase in price. The economic situation in Nigeria is affecting the traders badly, as the cost of goods keeps rising on a daily basis.
“A carton Maggi, depending on the brand is sold from N5,000 upwards. A carton of tomato paste, that can be purchased from N1,600 prior to this period, is now purchased from N2,200. A dozen of groundnut-oil sachet goes for N350, N450 and more depending on the brand. While a carton goes Cost N3,500 and N4,000 respectively.
Branded oil, tomato paste, semolina, spaghetti and season cubes have experienced an upswing in prices. Photo credit: Esther Odili.
“Virtually all goods in the market are expensive now. Semolina, wheat, spaghetti, to mention but a few have witnessed an upswing in prices. Even when we sell at wholesale prices, the retailers still plead for reduction at the expense of our own profit.
“The price difference of these goods is determined by the market location. Goods are more expensive in the retail market but affordable in major markets.”
At the market, the price of perishable items like tomatoes and chilli pepper has increased while that of onion is relatively low.
Traders at the markets attributed the price increases to seasonal factors, increase in transportation costs and the lingering security challenges in the North-east geo-political zone.
A big basket of Jos tomatoes now cost N22,000 while a basket of Hausa tomatoes cost N18,000 as against their old price of N12,000 and N8,000. A big bag of Chilli pepper cost N14,000 and a bag of new onion goes for N20,000 and the old one goes for N27,000.
Mallam Idris, another trader in the market, noted that the cost of conveying the product from the farm in other states to the market had become very expensive, leading to a rise in the price of the goods.
The prices of tomatoes and pepper have increased in markets across Lagos state. Photo credit: Esther Odili
Adding that only a few transporters now accept going to other states to carry goods to Lagos due to the nature of major roads.
He said: “Ramadan has not led to the cost of goods in the market. Even before the holy period began, prices of goods have escalated.
“A basket of tomatoes that cost N8,000 before has now risen to N18,000. A bag of pepper can be purchased from N8,000, depending on the size of the bag, the freshness and the market location. Onion is relatively low and is sold at reasonable prices, because of its excess supply leading to the availability of the product.
“The weather condition and the cost of transportation has affected the cost of perishable items in the country. The state of our roads is in a deplorable condition. Apart from the cost of transportation, cost of carriage from the market to our stalls is a major problem experienced by traders.
“It will be worse now that we are in rainy season. Whenever it rains, our business will be affected negatively, and it will result into a loss at the end of the day.”
Traders at the market informed NAIJ.com that consumers will continue to pay more for food items because prices keep fluctuating due to the exchange rate. Photo credit: Esther Odili
A trader who sells foodstuff in the market, identified as Mr Cletus, said that the increase in prices of goods was expected, reasons not far-fetched.
Adding that consumers will continue to pay more for food items because prices keep fluctuating due to the exchange rate.
“The increase in the price of goods now is expected in the market especially when you witness a consistent change in weather condition. The price of a bag of rice has moved up to N16,000 from N14,500 it was sold last month, while a bag of garri (white) that cost N13,000 last month, now goes for N15,000. The price of beans in various markets across the country is witnessing a sharp increase due to the recent drop in the value of the naira. A small bag goes from N28,000 upwards.
“A big bag of egusi (Machine) that cost N55,000 before, now cost N90,000 and a bag of small egusi cost N75,000 as against its old price of N38,000 but egusi (hand peel) is not available now.
“The price difference is as a result of the size of the bags. sometimes one cannot really give a fixed price for these food items because they fluctuate when you least expect it. A bag of ogbono that cost N85,000 before, now goes for N90,000 upwards. While a big nylon crayfish that cost N30,000 before, now cost N28,000. This was due to the change in the weather pattern.
“As it is now; consumers generally don't have enough money to purchase goods at current market prices. It is frustrating,” the father of four told NAIJ.com.
Dry pepper is relatively low at Oyingbo market, Oyingbo, Lagos. Photo credit: Esther Odili
The market is popularly known for cheap prices of goods, especially food items but residents are now living under difficult circumstances as a result of the increase in prices of the various commodities.
Some consumers who spoke with our correspondent expressed concern over the persistent price increase of some food items, especially rice, beans, fish and fruits others said they were really feeling the impact of the situation at hand.
Mrs. Adanna, who works in a private firm at Oyingbo informed our correspondent that her salary could no longer meet the demands of her family as the prices of goods have gone up.
The mother of three said:"The increase in prices was unprecedented and unjustifiable. It was unfortunate that the prices of commodities were on the increase while the income of many Nigerians has been static.
“Some traders are hoarding the price of the goods in the market. They are taking advantage of the situation to increase prices unnecessarily."
Oyingbo market is known as one of the oldest and busiest markets in Lagos for affordability of food items, yet the market is dry with the presence of few buyers. Photo credit: Esther Odili
Similarly, a trader at the market who deals in essential commodities identified simply as Amobi, said there was a general decline in patronage, as most customers can no longer afford many things, including those considered essential for the holy period.
Amobi said: “Customers are changing their tangs, going only for the necessary items needed for. Despite the fact that NBS said the economy has witnessed growth in the first quarter, the prices of virtually all goods keep rising.
“In fact, the more popular a brand is, the more expensive their product becomes in the market. Some goods are becoming more expensive on a daily basis in terms of quality and customer perceptions. What some Muslim faithful needs this holy period, they cannot even afford it as they lack the will power- money to do so. A lot of customers complain of low circulation of money while traders lament high cost of purchase.”
Further investigation at the market revealed that about where about 70 per cent of stock is imported, the prices are not much different. prices of local products are on the increase.
Although the foreign exchange fluctuates, Ken, who owns a supermarket at the market area, however, disclosed that their prices are reasonable considering the situation on the ground.
“The fall in the value of the naira is certainly having an effect on imported items. The amount purchased often times determines the price offered for sale. If we buy at a cheaper rate, we will sell at a cheaper rate. But if we buy at an expensive rate, we will sell at a higher rate. We only hope that things would soon stabilize,” Ken stated.
Traders will definitely add the cost differential to their goods especially the imported brands. Photo credit: Esther Odili
Meanwhile, the non-oil sector experienced a strong growth of 1.45% in Q4 2017 as compared to a contraction in the previous quarter and the whole of 2016. It is the development witnessed by the economy, especially outside the non-oil sector, no doubt, which informed the optimism of NBS about the nation’s economy.
With especially agriculture expected to continue its strong showing, employing people from all strata, and taking other factors into consideration and with the federal government estimating 3.5 per cent growth in 2018, an expectation that is quite realisable, the NBS is, no doubt, right to say that the nation’s economy is steadily improving and Nigerians should be optimistic but the traders informed that this assertion is only on paper but not evident in the cost of goods and services.
Market Survey: How Ramadan is affecting prices of fruits in the market via NAIJ.com TV
Source: Naija.ng
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