Burdened by the 69 per cent hike in fuel price, galloping inflation, continued weakening of purchasing power, amongst others, Nigerians now face a more daunting task of feeding as prices of food items go out of their reach. TONIA ‘DIYAN and TAIWO ADEYANJU report.
Isabel Osakue, a caterer with over 12 years’ experience, was excited after securing a juicy catering contract. For her, the proceed from this job would go a long way in finishing her housing project, already at an advanced stage. But getting to the Mile 12 market, Lagos, Osakue was shell-shocked at the sudden rise in price of food items, especially tomatoes and pepper.
According to her, at off season of a commodity like tomatoes, a basket usually sold for N4, 000. It was therefore surprising to her when she was told the same basket now sells for N28, 000.
The development has since left Osakue torn between the devil and the deep blue sea-either to ask for money from her client, who seemed unwilling to increase the contract fee; compromise her cooking standard by reducing cooking ingredients, or simply making do with the very little profit margin that would be left for her from the job.
Similarly, a civil servant, who identified himself as Mr. Suleiman Idris, told The Nation Shopping of his shock when his wife returned home to show him the four pieces of tomatoes she bought for N500. Crest fallen, Idris said he fears for his continued ability to effectively feed his family if the situation persists.
The above scenario captures the picture of the new challenge now confronting Nigerians across the country.
Across the length and breadth of various markets visited earlier in the week, both traders and shoppers were seen lamenting the situation. Several shoppers had to cut down drastically on the quantity of items they had earlier planned to buy. Sadly, even at that, the amount spent remained the same though for smaller quantities of items.
At Mile 12 market, for instance, a shopper who gave her name as ‘Mama Sunday’ explained that the tomatoes she bought for N4, 000 remained the same quantity she usually buys for N500. She may not be exaggerating.
A survey across markets in Lagos showed that a basket of tomatoes, which used to sell for between N3, 500 and N4, 000 now sells for as much as between N25, 000 and N30, 000.A basket of pepper previously selling for N5, 000 now costs N27, 000;Bell pepper (Tatase) was previously N5, 000 per basket but now sells for N30, 000 per basket. In all of these and interestingly, the cost of a basket of Onions dropped from N9, 000 to N8, 000. This, the traders attributed to the fact that it is the season for the commodity.
In the staple food segment, a 10kg bag of Semovita was previously N2, 100 but now N2, 400; 5kg cost N1, 300 while 2kg and 1kg cost N550 and N280 respectively.A 10 kilograms bag of Semolina is now N3, 000 as against the former N2, 200. 5kg and 2kg of the item cost N1, 700 and N700 while 10 and 1kg of another brand of the same item (Mama Gold)sell for N2, 950 and N300.
For lovers of beans, it is not a particularly good story, as the price now ranges from N11, 000 to N27, 000. In the rice category, Tomato ricecost N15, 000 from N13, 500, Apropedro rice is N17, 300 from N12, 500, Brazil rice N17, 000 from N15, 000 and Aroso riceN13, 500 from N12, 500.
A bag of sugar now cost N11, 000 from N9, 200, Mr. Chef Salt sells for N1800 from N1, 200. Dangote Salt didn’t change in price whileAnapuna Salt can no longer be found in some markets.
At the pasta section of major markets, a carton of spaghetti cost N3, 300 from N1, 800. A carton of Minimee noodle now cost N1, 300 instead of the former N1, 150, Chiki noodles cost N1, 750, Indomie noodles, Hungry man size and Super pack cost N2, 350, N2, 400 and N1, 450 respectively. Golden penny noodles sells for N1, 200, Honeywell noodles goes for N1, 200 whileCherrie noodles now cost N1, 200.
25litres gallon of Kings vegetable oil increased to N 9, 300 from N8, 800, 10litres is N4, 500 from N3, 500 and 5litrs N2, 200 from N1, 600. 5litre palm oil cost N1,200 jumping high from its former N1, 100, 10litres palm oil has increased by a thousand naira to N3, 200 and 25litre palm oil now sells for N7, 500 from N7, 000, showing a N500 increment.
Soup seasoning has increased by two percent with 50 sachets of Gino tomato paste selling for N3, 200, Tasty Tom cost N3, 100 for 50 sachets. Gold and Sonia sachet cost N2, 400, Rosa tomato paste is N2, 500 and the pepper mix N2, 800. Other soup seasoning like Maggi and Knorr cube cost N400 and N450 per pack, Maggi Star N300, Chicken flavour N300, Maggi Suppy sells for N250 and N270, Maggi chicken N550, Maggi crayfish N700.
Spices like a rolls of Cittos, Gino thyme and curry cost N100 each, Tiger curry and thyme cost N80 each, Nora jollof, friedrice, Kitchen Glory, Mevina each cost N220, pack of Benny cost N950, Jolly bigger and smaller pepper cost N150 and N70 respectively, and Ducross curry and thyme cost N120 each.
Traders spoken to by The Nation Shopping attributed the price increase to a sharp increase in transportation cost of their commodities- a direct response to the recent 69 per cent increase in fuel price. Yet, others blame it on the restriction now placed on importation of certain food items, and the tightening noose of the Nigeria Customs Service on smuggling activities.
For instance, the hike in the price of beans, traders allege, is as a result of restriction placed on importation of the commodity, which is usually sourced from the neighbouring countries of Niger and Chad Republic.
According to the Secretary of Tomatoes Sellers Association, Mile 12 branch, Lagos, AlhajiBiliya Adam, supply and transportation of tomatoes from the North has drastically affected prices of staple items.Similarly, the Secretary of Daleko Market, Mushin, Lagos, Mr. Biola Owolabi, said the hike in prices of staple items has affected everyone including retailers, wholesalers and manufacturers at the market.
Mrs. Modinat Badmus, a trader at the Iponri Market in Surulere, said patronage in the market is now marred by low turnout of shoppers. She blamed this on the rising cost of commodities.
“A dozen of peak milk we used to buy for N450 now sells for N480, even five pieces of sugar we used to purchase for N250 is now N275,” she said.
A trader at the Sabo Market in Sagamu, Ogun State, Miss. DeolaAjayi, said prices of items they bought from producers had increased.
Ajayi said many shoppers had reduced their list, saying staple items such as 10kg of Semolina has increased from N1,800 to N2,800, a bag of sugar which used to sell for N7,000 to N10,000, among others.
The increase in price is not only applicable to staple items.A housewife, Mrs Omotayo Babajide, who bought local clothing material in large quantity for a ceremony, said the trader she bought the same item from last week had increased it by N400. She said the trader claimed that the price was increased by the manufacturer. This, she said, left her with no choice but to increase the retail prices of her items to cover cost and make a small profit margin.
The price increase has also left a sour taste in the mouth of traders of non staple items. For instance, Mr. Abdulwahab Abdulkabeer, who deals in men’s wears at the Idumota Market, complained of low patronage and turnout of buyers.
Also, at Yaba Market, Alhaja Oluwayomi Owolabi disclosed that traders have been experiencing low turnout of shoppers since the beginning of this year. For traders, who display their wares for sale till late night, the challenge of illuminating their stall is a worry for them, considering the cost of fueling their generators which is now seen as a luxury.
Online shopping platforms are also not left out. For shoppers on the platforms, it is double losses for them. First, they have to pay for the increase in commodity price and pay more for delivery services.
NosaIdehen, Founder, WesternMall Nigeria Limited, an online auction platform that deals with direct sales, said the main challenge for his kind of business was delivering of goods purchased. His words: “As expected the tariff involved in delivering to customers will increase. Because we always find ways of making shopping easier and cheaper, we intend to use different drop points around Nigeria so that customers will be able to pick up their items at the closest drop off point saving cost.”
SPAR Nigeria’s spokesperson, John Goldsmith, also agreed that the new fuel price is likely to affect The Hypermarket business and its numerous customers.
His words: “SPAR Hypermarket stores are part of the community and the whole eco-system of the country and hence the impact of the strike on SPAR store will be same as other business establishment. Raising fuel prices definitely impact the operation of the stores in both short and long run. As a part of the business community, we aspire for stable business conditions which enables concrete decision making and helps align actions for enhancing shopper experiences.”
Although he said there has not been any sign of panic buying across its stores, the situation, he explained, may induce temporary poseponement of purchase and would never boost sales in a long run.
Goldsmith explained that in the given economic scenario, the cost of inflation not only affects price of the products, but also the business operating cost.
For online retail store Gidimall boss, OsamedeEvbakhavbokun, the new fuel price has affected his business and in actual fact it is still affecting it. The price for all products has increased and as such reduced sales as customers and client are being cautious, taking their time to see what will happen in the coming weeks before they can make any purchase.
“Yes, labour has advised Nigerians to stockpile their homes with food, though we are not into foodstuffs and perishable goods but even at that, the foodstuffs is actually too expensive to stock when a ball of tomato is about N150.00,” he said.
Once there is an increase in price of products, it takes a little while before customers accept the change in price and it is eminent as the fuel price has increased the cost of all products.
But all hope seems not lost. Adam explained that upon assurances from the Minister of Agriculture, Dr. AuduOgbeh, who promised to find a solution to the tomato “Ebola” virus epidemic, prices may begin to change. This probably explains why a basket of tomato dropped from N28, 000 to N25, 000.
But for how long will Nigerians wait for the price drop?
