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BREAKING: Foodstuffs Price Crash Ultimatum: We’re Not Father Christmas, Traders Reply Nigeria Government

The significant increase in the pump price of Premium Motor Spirit (PMS) otherwise known as petrol, which saw the Nigerian National Petroleum Corporation Limited (NNPCL), raising it from about N568 to N855 per litre may have made nonsense of the ultimatum given to market associations and traders across the country to crash the prices of foodstuff by 50 per cent within one month.... CLICK TO READ THE FULL NEWS HERE▶▶

With the latest fuel price increment, the cost of transporting foodstuffs from the nation’s farming hinterlands across the country to the urban centres in state capitals and other major towns has equally gone up.

Also, the continuous loss of value of the Naira against the United States dollar and other international trade currencies, according to market leaders in Lagos State, have contributed to the increase in foodstuff prices.

They equally believe that the combination of armed herdsmen’s kidnapping activities and destruction of cultivated crops by herds of cattle in farming communities had also led to reduction in the tonnage of farm produce, thereby making farmers sell at higher prices to bulk buyers, who constitute the primary link between the farmers and major distributors in markets across the country.

In summary, they identified the reasons prices of staple foods have remained high as rising naira-dollar rate, high cost of transportation and endless extortions of transporters by security operatives on the highways.

Lambasting the government for playing politics with the issue of rice cultivation in the country, a rice dealer, Mrs Augusta Mba told Sunday Sun: “More than 90 per cent of the rice the people eat in Lagos is foreign rice because we rarely get to see the local rice the government often claims it is investing on. And since the one available is imported and paid for in foreign currency and not in naira, there is no way anyone should expect its price to fall while the foreign exchange rate remains high.

“It is only from the new media that we hear about local rice from news media, but never see the rice in commercial quantity in real life. So, the price of rice will be high for some time until the naira regains value against the US dollar.

“The government should stop the politics over local rice production in Nigeria, which started during the tenure of former President Muhammadu Buhari, when we were deceived with the fake local rice pyramid in Abuja.”

Besides high foreign exchange rate, rice dealers also complained about high cost of transportation occasioned by the astronomical increase in fuel price, a fallout of the removal of subsidy on fuel by the current administration and endless extortions by security agents along major roads. “Before the government announced the withdrawal of subsidy on fuel, the average cost of transporting a bag of rice was between N500 and N1,000 depending on the distance, but now we spend N2,000 up to N3,500 per bag on transportation.

“Again, all forms of uniformed government agents also demand to be settled before you would be allowed to go with your goods even when the goods have reached the town. This will definitely be transferred to the consumers in form of higher prices,” she said.

Expressing similar feelings about the ultimatum issued by the Federal Competitions and Consumer Protection Commission (FCCPC) to traders to crash the prices of foodstuff within 30 days, a leading sub-distributor of imported food products at the newly reconstructed Irepodun Market, Ikotun, which is managed by a private developer under a concession agreement with the Igando-Ikotun Local Council Development Area, who owns three shops combined into one, Alhaja Fausat Morenike Adeleke, fumed when Sunday Sun sought her views.

She said: “Sometimes I wonder about these people in government. Abi their head correct so? So, they expect that a trader who buys goods at high price will sell at a lower price? Where will this happen? Anyway, they talked that one for talking sake. Let them come inside the market to tell us so. Nonsense!”

In the open space close to the bulk foodstuff section of the market, on Wednesday morning, several muscular young men from the northern parts were scurrying about to unload cargoes of rice, beans, yams, ginger and tomatoes from five trailer-trucks that arrived the market in the night.

From her shop, Mrs Funmilayo Martins, who sells imported and locally produced vegetable oil and other food condiments, observed the frenetic pace at which the young men went about their work. Catching sight this reporter, who approached her shop, she shifted her gaze and paid attention.

But her countenance changed when asked about the FCCPC ultimatum.

With anger written all over her face, she spat out: “Let the Federal Government open their own bulk market like Lagos government has done and sell to ordinary people at lower prices. That is what they should do with the billions they have been claiming to be giving to poor people. They should just leave us alone.

“We are struggling to survive and then government increases the price of petrol again. Do they want our blood too?”

Another of the worst affected basic food items in terms of astronomical price hike is beans.

Findings by Sunday Sun revealed that the price of beans increased by over 800 per cent within the space of one year and dealers are not expecting any miraculous crash in the price of this staple food any time soon.

A trader, Haruna, at the popular Ile-Epo Market in Oke-Odo LCDA of Alimosho, blamed a number of factors for the exorbitant hike in the price of beans. He noted that beans, being one of the last food crops to be harvested in the country, is often the worst hit by the activity of herders who often invade farmlands especially during dry season to graze their herds.

Haruna also identified high cost of agricultural inputs, which he said, has forced many beans producers to increase the market price of the commodity.

But beyond these two reasons, the majority of beans farmers are more interested in exporting their produce than selling it in the country.

“Since naira was devalued, a good number of beans farmers now prefer to export their produce than sell it in the country. So this has made beans very scarce and costly now,” he revealed.

Meanwhile, the prices of some food items have considerably crashed in the last few weeks.

These items include pepper, tomatoes, cassava flakes and yam, which traders predicted could crash further as their harvest peaks.

The Oyingbo Market is a bustling foodstuff distribution hub for rice and other grains, stockfish, dried fished, Ogbono, Egusi, snails, among other staples which are sold in bulk.

The daughter of the Iya Oloja (female leader of the market), who requested not be identified, contended that it was unfair for the FCCPC to blame traders for the high price of foodstuff, arguing that they could not be reasonably expected to sell their goods at below purchase price.

She said that the traders sell according to the prices given to them by bulk suppliers.

“The suppliers keep complaining about the high cost of transporting goods to our market. That is a huge problem. We do not want to drive away customers. We want to sell our goods, but we cannot sell at below our cost price.

“For instance, I sell bitter kola, I bought a bag for N250,000 last month and just last week I bought a bag for N300,000. If I should go back next week I’m very sure the price would go up because of the recent increase in the pump price of petrol. Everyone is aware that cost of transportation is very high.

“The fact is that our leaders should do something to help us to reduce the cost of living in Nigeria and alleviate our suffering,” she said.

In the Kajola area of Ibeju Lekki, Kunle Ojo sells foodstuff.

Despite the fact that the FCCPC ultimatum regarding food prices went viral on social media and was broadcast on the regular radio and television news programmes, Ojo told Sunday Sun that he did not know about it.

The ultimatum, he told Sunday Sun, has not had any effect on the prices of foodstuff.

He said: “I haven’t noticed any crash in prices of foodstuff. In fact, this last Monday I went to the market to buy foodstuff to stock up my shop. The price of everything has increased either a little or by a mile. Especially, those things that we buy in bulk, like rice and garri.

“Nothing has changed for us here. A 50Kg bag of rice has gone from N70,000 to N85,000; 50Kg bag of beans has risen to N140,000 from N120,000, and so on. So, when the government ordered that traders should reduce the prices of foodstuff, are we going to sell our good below cost price?

“Is anybody like Father Christmas? If the government wants prices to drop, then it should subsidize the price of petrol, remove all the unnecessary checkpoints that take money from transporters.

“I heard that the government said prices of goods are dropping. I cannot see the reasons the government said so. Maybe the government is trying to give people hope. But it is false hope, lies, the reality here is very different. Everything is still costly. If there’s any reduction, it’s not reaching the common people.

“Anyway, I will only believe when I can go to the market and buy everything on my list at lower prices than I did the last time I went to restock my shop. That will surely convince me. Especially all those bags of rice, garri and beans that we buy now at high prices”

Just like Ojo, Mrs Chidinma Okafor, who runs a foodstuff shop in Imaletealafia market, Ibeju-Lekki, where she sells rice and beans, among other food items, when asked about the government’s news report, she similarly expressed surprise about it like Ojo, saying: “I haven’t heard of such a thing. Prices dropping? How? Maybe it is in another market, not here in this market. Here, things are even more expensive. I sell rice, beans, and garri. Every week, when I go to buy from the wholesalers, prices either stay the same or go up. Just last week, the price of a bag of rice went up again. This announcement, I don’t know where they’re seeing it from.”

A trader from the northern part of the country, Musa, who also has a medium size foodstuff shop in Bogije, Ibeju-Lekki, equally said that prices were not dropping to what the government had announced to back up its ultimatum to traders.

“I haven’t noticed any significant change. I didn’t even hear about this announcement until you mentioned it. If there are changes, they are not noticeable for basic things like rice, beans, and bread. It is only yams that I am aware of that are now slightly cheaper than they were two months ago. But I wouldn’t say that is a major drop. It’s just one or two things, and you know, yams aren’t something you buy everyday, plus maybe it’s just that particular market that I went to. As for the other essential things, they are still very expensive.”

The same refrain was heard at Karambar Restaurant at Imalete, Ibeju-Lekki, where the male owner confirmed hearing about the government’s claim of prices of foodstuff dropping, but expressed reservation about the claim.

He said: “Yes, I heard it on the news, but I haven’t really seen any significant change. I still have to budget carefully to manage my restaurant’s expenses. Maybe tomatoes and some seasonal vegetables are a bit cheaper, but it’s not enough to make a big difference. Prices for items like cooking oil, chicken, and rice are still very high. The price of chicken just recently went up to N6,500 from N4,500, which was I used to buy it.”

Demoslik Melody Store located along the Akesan-Obadore road, off the LASU-Iba dual carriageway is a go-to place for foodstuff purchases.

The owner who refused to disclose his name, said that he was not aware of the ultimatum, but stressed that it would not matter even if he had known about it, contending that it was irresponsible and insensitive of the government to expect traders to sell goods bought at high price at lower prices.

He, however, conceded that the prices of some items, such as beans and garri had insignificantly reduced in price just before the latest increase in the pump price of petrol.

He expressed concern that by the time he goes back to restock, the fresh increase in transportation would also make the price go up again.

Similarly, at Affordable Superstore, located along the Akesan/Obadore road, which stocks foodstuff, the owner of the shop, a matronly looking woman said that she was unaware of the ultimatum, but had resigned herself to the daily increase in prices of foodstuff.

With the new petrol price , the continuing fall of the naira and other factors, she said that prices would rise further in subsequent weeks.

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Kylian Walterlin

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