Business

Nigerians groan as price of cooking gas, rice, other staple foods surge in October

The price of major food items has significantly increased across several markets in Lagos State, as Nigeria grapples with the high cost of goods and services.

The cost of filling a 12.5kg cylinder of gas increased by 44% in October 2023, selling for an average of N13,750.

Also, the price of a 50kg bag of foreign rice increased by 13.5% in the same month to sell for an average of N47,850 compared to N42,000 recorded in the previous month.

This is according to the recent food market survey conducted by Nairalytics, the research division of Nairametrics.

Are you idle? Are you looking for a legit work? or a side hustle to enhance your finance status? Are you interested in learning how to trade or you have been a trader but don't know how to make profits in your Forex Trading journey. Dm (https://wa.me/2347085284771) let’s show you how it works. Wants Acct Management? If you want a copy trade dm (https://wa.me/2347085284771) and join our signal group. We trade volatility strictly on (step index 📈📉) PereFx 📉📈. Note: I charge!!!!

Nigerians have continued to grapple with galloping food prices over the years, which has only worsened following the announcement by the federal government to discontinue petrol subsidy payments and devalue the official exchange rate.

A recent report by the National Bureau of Statistics (NBS) revealed an 18-year high headline inflation of 26.72% in the month of September, driven by the upswing in the food and core components of the inflation basket.

Specifically, food inflation (30.64%) rose to its highest level since August 2005 while core inflation (21.84%) surged to an almost 17-year high.

The hike in the cost of petrol has triggered a significant increase in the cost of transportation across the country, further impacting the selling prices of food items especially in the southern part of the country.

The surge in the cost of food items has further eroded the purchasing power of average Nigerians, considering the importance of food in the scale of household expenses. Recall that Nigerians spend an average of 56% of their household expenditure on food items.

However, with skyrocketing costs of food, transportation, and other services, Nigerians have expressed their grievances in Nairametrics latest food market survey.

Highlights of the report

The price of a 50kg bag of brown beans that used to sell for an average of N32,625 last month, rose by 22.6% to sell for N40,000.

Also, a 50kg bag of foreign rice also increased by 13.5% to sell for an average of N47,850 from the previous average of N42,000 recorded last month.

A big sized tuber of yam which initially sold for an average of N3,150 now sells for an average of N3,700, representing an increase of 12.9%

Similarly, the cost of a 25litres gallon of local palm oil rose by 16.8% to sell for an average of N27,750 from the previous average price of N23,750, while that of vegetable oil rose by 13.9% to sell for an average of N35,875 from the previous average price of N31,500.

On the flip side, the price of a carton of full chicken dropped by 21.7% to sell for an average of N22,500, from an initial average of N28,750.

In the same vein, a 450g tin of Milo now sells for an average of N3,030, indicating a 12.7% fall in price compared to an initial average of N3,480.

Also, a big bag of pepper that was initially sold for an average of N27,500, now sells for an average of N23,750, indicating a decrease
of 13.8%.

Notably, the price of some food items such as fish, wheat, milk, amongst others retained their initial prices.

Market Insights

In a discussion with Charles, a gas trader at Oyingbo Market, he said that the price of cooking gas increased due to supply challenges, which is an interplay between global crude oil prices, exchange rate volatility in the Nigerian market and other logistical issues.

He expressed his fears of a further hike in the cost of petrol, and the prevailing issues are yet to be addressed.

Eunice, a gas user said in a conversation, “I have been going to the gas station for the past 5 days, and I have not been able to purchase gas because of, lack of supply. The queue was too long, and the product is very expensive, so I had to opt in for the use of a charcoal pot to cook”.

In the same vein, while interviewing another consumer at the Oyingbo Market, Madam Oke, lamented the hike in the price of food items in the market.

“Almost all the food stuff you ask for in the market has more or less doubled over the past three months.

The prices are highly volatile and is affecting our purses.

The government need to intervene on these continued price increases,” she lamented.

Malam Musa, a yam trader at Daleko Market, attributed the increase in the price of yam to the high cost of transportation. He added that the high cost of petrol and diesel has had significant impact on the cost of transporting food items from the food producing region to the southern part of the country, which is reflected in the final selling price of tubers like yam and potatoes.

In a conversation with Kehinde, a mother of three, purchasing groceries at Mile-12 market, she explained that she has had to double her budget for food in the last two months at the expense of other things as well as savings.

“Typically, we spend an average of N80,000 on food for the month, but the recent increase in the price of food has meant spending around N150,000 to N180,000 monthly, while income has remained constant, leaving the family with very little to allocate to other areas like children school fees, savings amongst others,” she said.

About Nairametrics Food Price Survey
Nairametrics food price watch is a monthly household market survey that covers the prices of major food items in Nigeria, with emphasis on four major markets in Lagos – Mushin market, Daleko market, Oyingbo market, and Mile 12 market…..CONTINUE.FULL.READING>>>

About the author

Bunady

JOLOWO BUNALAYEFA PIUS is the Chief Executive Officer (CEO) for BUNADY NEWSLITE GLOBAL ENTERPRISE (Bunady.com). He started his Blogging/Journalism career at God's Own Wireless Company 2012. He's a graduate of Adekunle Ajasin University Akungba Akoko Ondo State, with a major in History And International Studies. You can contact him for press events, advertisement promotions on Email: contact.bunady@gmail.com

Leave a Comment