Market News

With expectations that the drop in the dollar-to-naira exchange rate would lead to a reduction in the cost of goods and commodities quickly, traders and consumers have lamented that they are yet to feel the impact on their wares, as the cost of household items keeps skyrocketing.

Checks by The Guardian on some of the markets showed that household items, including staple foods, still carry high prices.

With the naira improving against the dollar in recent weeks, dropping from around N1,900 to the dollar to N1,250 to N1,300, many Nigerians were hopeful to see a lot of positive impact on the economy, lamented that the improvement has only reflected on the market world but has not reflected on the price of goods and services in the local markets.

Findings showed that the falling value of the naira, the rising cost of inputs and challenging conditions for domestic production have spiked the price of food across the country.

This is just as Nigerians are experiencing the worst food inflation in decades amid a weakening naira, insufficient domestic agricultural production, and an over-reliance on expensive imported food.

Data from the National Bureau of Statistics (NBS) showed that the food inflation rate in March 2024, reached 40.01 per cent year-on-year, marking an increase of 15.56 percentage points from 24.45 per cent in March 2023.

The bureau attributed food inflation to rising prices for items such as garri, millet, and akpu uncooked fermented (all part of the bread and cereals category), as well as yam tuber, water yam and others.

The data custodian further stated that on a month-on-month basis, the food inflation rate in March 2024 stood at 3.62 per cent, showing a decline of 0.17 per cent from February 2024, when it was 3.79 per cent.

For the 12 months ending in March 2024, NBS said that the average yearly food inflation rate was 31.40 per cent, an increase of 8.69 per cent points from the 22.72 per cent recorded in the previous twelve months ending in March 2023. Additionally, it stated that the inflation rate increased to 33.2 per cent for March 2024.

This, the bureau said represents 1.5 per cent points increase from the 31.7 per cent recorded in February 2024.

It stated that the increase in the inflation rate in March was slower compared to the 1.80 per cent increase recorded in February 2024.

According to NBS, inflation in March was driven by an increase in food and beverages coupled with energy and housing costs.

It stated that on a year-on-year basis, the headline inflation rate increased by 11.16 per cent from 22.04 per cent in March 2023, adding that the headline inflation rate for March 2024 was 3.02 per cent, a decrease of 0.10 per cent from February 2024, when it was 3.12 per cent.

Sharing their challenges with The Guardian, the market sellers said prices of commodities would continue to skyrocket unless the cost of petrol and transportation was reduced.

A provision store owner, Fabian Ohaya, who sells in Amuwo Odofin, Festac area in Lagos, lamented that consumers now go for cheaper alternatives, thereby reducing his sales at the end of the day’s transactions.

According to him, “In a day before I used to make up to N6000 to N10,000 naira as profit, but now, I don’t make up to N3000 due to the cost of commodities.”

Another seller, Prosper Iwuoha, who sells foodstuff, lamented how his business has been affected due to rising inflation and subsidy removal.

He said: “Before, the price of a small tuber of yam was N1000 to N1500, but now, it is N2500 and above. A crate of eggs formally was N2000 but now it is N4000.

“I find it difficult to transport my goods from the market to my shop after placing an order because of the increase in fuel. it takes at least three to four days before my goods arrive and when they finally come, most of them are already spoilt or about to spoil. Customers don’t patronise me like before anymore, they have reduced totally,” he lamented.

He urged that the government should work hard to ensure that the economy is fixed for the good of the common man. “The government should also stop making promises and start giving us action because all of them that are of high status are all living fine, they are not experiencing what we are suffering here. Those without ideas should step down and let others with visions and goals take over,” he said.

An expectant store owner, Clement A., who was hopeful that prices of commodities would drop sharply due to the current rate of the dollar, said it was only in some that were reduced by N5, 000 due to public outcry.

She said: “A carton of indomie (120g) was formally N17, 000 now N12,000 and the one of (70g) was before N11,000 and now N7,000, while other products instead of coming down continue to increase.

“Customers are always complaining to us as to why our goods are still at a higher price, we try to make them understand that when we go to purchase more goods to stock up the shop, we also buy at a higher rate. So, coming back, we add our profit which makes it higher, but it is not our fault.”

Adding her voice, a foodstuff seller, Tina, said a bag of beans (50kg) is still selling at N95,000 if not higher, but that of rice (50kg) was formerly N85,000 now N82,000, giving a N3,000 difference.