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Consumers, Traders Groan As Food Prices Soar by ak47mann(m): 1:14pm On Aug 27, 2011
The steady rise in the prices of food items all over the country has become a major source of headache for the average Nigerian, a nationwide survey has shown.


A survey at some major markets in Port Harcourt, including Oil Mill; Mile One; Mile Three and Lagos in Borokiri area, showed a marginal increase in the prices of food items, but a sharp increase in the prices of fruits.


This is in spite of the July inflation rate released by the National Bureau of Statistics on August 16, 2011. The figure stated that inflation had dropped from 10.29 per cent to 9.4 per cent in July 2011.


A fruit vendor at Mile One Market, Mr. Ike Kennedy, said the adjustment in the prices of apple and other fruits was because of the Ramadan.


“I can assure you that as soon as the Muslim fast is over, the price will come down. It has been the trend in this market. Before, we used to sell a piece of apple for between N50 and N60 but now, it has increased to N80. If we package the apple properly, we sell a pack of five for N500,” he said.


At Oil Mill Market on Eleme Road, a market touted to be where goods are most affordable in Port Harcourt, the story of price increase is the same. The only difference is that prices are adjusted with slight reduction such that an apple sold for N80 in other markets is sold for N75 or N70.


A consumer, Mr. Robinson John, attributed the trend to retailers’ gang-up against consumers.


He said most retailers said it was the only way they could obtain their ‘minimum wage’ as they were not in government’s employ.


He said the government’s lack of capacity to enforce a price regime was responsible for the galloping prices of food items.


He said, “Look at kerosene; for two months now, the price has hit an all-time high, yet the government has been unable of finding a lasting solution to the problem. Almost every aspect of people’s lives in Nigeria is affected by one thing or another.”


An economist, Mr. Boniface Fineface, said the rise in the prices of food items in particular was due to the mentality of importing virtually everything consumed in the country.


He said, “Everything in Nigeria is imported. Even toothpicks are imported. This brings us to the issue of epileptic power supply.


“This malady has stifled the productive capacities of Nigerians, hence most people rely on imported products. Until we accord agriculture and industrialisation their right places in the economic equation of Nigeria, the problem of this nature will continue to dog the country.”


A restaurateur, who identified herself simply as Ngozi, corroborated Kennedy’s standpoint that it was as a result of the Ramadan.


“It has always been the trend every year during this period. Greedy marketers and traders see the time as an opportunity to make brisk money at the detriment of the consumers.


“In my restaurant, we sell a plate of food for N400. We have not increased our price for some time. What we do at such a time is to systematically reduce the size of the portion we sell. By that, we would have factored in the extra cost we incurred in buying the food-stuff,” Ngozi said.


She added that another reason for the price increase in the Port Harcourt metropolis was power outage.


“This situation has led to large number of traders spending much money to power their generators. As expected, the burden is passed on to the consumers,” she added.


Enugu


In Enugu State, residents said that the forthcoming inauguration of Shoprite Stores would lead to a slash in the prices of food items in the state.


The residents reasoned that the monopoly being enjoyed by traders in the various markets and other super stores in the state was the cause of the continuous rise in the prices of food items.


“Since things are sold at affordable rates at Shoprite, everyone would want to go there as soon as it takes off. When traders in Ogbete Market, New Market and other markets realise this, they will be forced to bring down the prices of their food items,” said Mrs. Ngozi Onyekwelu, a consumer in Enugu.


Onyekwelu added, “Moreover, one can always find good things, not imitation, to buy at Shoprite. The only modern superstore we have in Enugu is Roban Stores, but their prices are always high and the management is just too overbearing. I think the coming of Shoprite would make them sit up.”


But a trader in one of the road-side shops at Dhamija Junction, Trans-Ekulu, Mrs. Onyekachi Ibe, said, “The issue is not about Shoprite opening in Enugu or not, but about the manufacturing companies of most of the viable products.


“A plastic pack of Coca-Cola and similar products that used to sell for N100 is now sold for N120. The increment in the price of the product was ordered by the manufacturer, Nigerian Bottling Company.”


Showing proof of evidence from the company, she said, “We didn’t just increase the price on our own. Whatever gain we get comes from the company in form of commission on each plastic of Coke, Fanta, Sprite or any of its drinks that is sold.”


Anambra


However, the fear of being poisoned has helped to reduce the price of beans in Awka, the Anambra State capital.


A market survey carried out by SATURDAY PUNCH indicates that the price of beans has dropped from N40 to N30 a cup.


A trader said the demand for beans dropped since a ‘wicked’ rumour was passed around that members of the Boko Haram Islamic sect might have poisoned the beans cultivated in the northern part of the country.


“They (consumers) buy only if they are sure that you have old stock,” Mrs. Nnena Nwankwo, a trader at the Eke Awka Main Market, Awka, said.


Otherwise, there has been a general rise in the prices of food items in Awka, the Anambra State capital.


A survey showed that though the general price increase affected almost all food items, the rate of increase varied from one item to the other.


Sardine, a popular canned fish product, has risen from between N100 and N120 that it was two months ago to between N200 and N250.


The story is similar for Geisha, which rose from N100 to N180 per tin.


Rice, a staple food rose from between N35 and N40 per cup to N45 and N50 per cup, while a carton of frozen fish has gone up from N6,800 to between N7,500 and N8,000.


The price of Indomie noodles, a popular quick meal for children, has risen from N1,650 per carton to N1,850. It is a similar story for spaghetti, whose price has marginally increased.


Though the price of bread was increased many months ago, SATURDAY PUNCH observed that the sizes of the commodity had reduced in recent times.


For drinks, a bottle of Coke has moved up to N70 from N60, while the plastic bottle has risen to N140 from N100.


A store owner said Coca- Cola Plc., makers of Coke, had tried to cushion the effect by giving store owners umbrellas and coolers.


But the price of garri, a major staple food, did not fall. It is the same story for beans.


The traders that spoke with SATURDAY PUNCH could not give any reason for the general increase in prices.


But one of them, Mrs. Ngozi Okeke, said the prices of spaghetti, Indomie and bread could have gone up because of the hike in the price of flour, the primary raw material for the food items.


An Awka-based economist, Mr. Gabriel Nwoye, said the rising prices could have been caused by the effort of the government to restrict the importation of food items and raw materials.


He said low investment in agriculture, high cost of production, energy, bad roads and transport were telling on the prices of food items.


He gave the examples of Awka North, Ayamelum, Anambra West and Ogbaru local government areas of the state, which are the food baskets of the state, but have no roads for the transport of their produce.


While Awka North and Anambra West have been cut off by bad roads, the rains have worsened the situation in Ogbaru and Ayamelum, he said.


Kwara


In Ilorin, the Kwara State capital, prices of many food items have gone through the roof.


According to a market survey carried out on Thursday and Friday, the affected commodities are rice, beans, palm oil, plantain, tomatoes, pepper and onions.


A bag of onions that used to sell for N5,000 in June, now costs N8,000; a bag of pepper that sold for N3,000 in June now costs N7,500; while a basket of tomatoes that used to be sold at N800 now costs N2,000.


Twelve bunches of plantain that sold for N6,500 in June now sells for N10,500. A bag of beans that sold in June for N7,700 now costs N10,000.


A can (25 litres) of palm oil, which was sold at N4,200 in June now sells for N5,700. Also, 25 litres of groundnut oil sold in June for N5,500 now costs N7,000.


A 900g of Milo beverage, which sold for N1,100 in June, now sells for N1,200; while its 450g, which was sold for N600, now sells for N650.


Also, a 900g of Bournvita, which sold at N1,000, is now sold for N1,100, while its 450g, sold at N600 in June, now sells for N650.


A trader, Alhaja Mulikat Adeola, said the increase in the prices of the foodstuffs was attributable to the ongoing Ramadan.


She said many Muslims wake up very early in the morning to pray only to wake up late in the morning, making it difficult, if not impossible for many of them to go to their farms.


She said this had made supply to be low, arguing that since supply could not match demand, prices had to go up.


She added that for commodities that were transported from the northern part of the country, the traders no longer engaged in long distance travels because of the fast.


Another trader, Alhaji Shola Balogun, said many of the traders that came from the North complained of extortion by security operatives, which they had to transfer to the consumers through price increase.


Balogun said his customers complained that there were many checkpoints on the roads since the menace of Boko Haram, adding that they normally parted with money before being allowed to move on.


This additional cost, according to him, is passed to consumers.


A consumer, Mrs. Alice Nwokodi, said the price increase had adversely affected her family because her monthly allowance was no longer sufficient for the family.


She said she had been forced to skip meals of her children. She said that some traders increased prices of commodities in anticipation that the N18,000 minimum wage would be effected this month.


She added that she hoped that after the Ramadan, prices would come down.


She called on the government to prevail on the traders to avoid artificial scarcity and unwarranted price increases. An investigation by our correspondent in some major markets in the Edo State capital, Benin, showed a marked rise in the prices of some food items, including yam, rice and pepper.


At the popular Oba Market, a tuber of an average sized yam sold for between N200 and N300, while bigger ones went for as high as N500 per tuber. A plastic of rice is sold for N500, compared to one month back, when the same could be bought for less than N400.


A visit to some other markets within the metropolis, including Ogida, Oliha and Santana showed the same pattern, which has culminated in a steady rise in the prices of essential food items.


At Santana Market on Sapele Road, a cup of pepper went for as high as N150.


A restaurateur, Juliet Abbey, told our correspondent that the situation had only added to the suffering of Nigerians.


Abbey, whose restaurant, J. M. J. African Dishes, is located in the Government Reservation Area, said even the new yam did not come cheap.


She said, “Even the new yam is expensive. The bigger ones go for N500, N400. Rice has gone up; it sells at N500 per rubber as against N450 a month ago.”


The woman, who explained what she meant by a rubber of rice, continued, “Yes, a rubber, which is 12 cups, is now N500. A sachet of Peak milk is N50; it used to be N30. We hear that flood overran their (manufacturers) factory in Lagos, which they say is responsible for the rise in price.”


A further check by our correspondent showed that a tin of sardine is sold for N250, while a tin of Geisha sells for N120.


An analyst, Alhaji Abdul Aramen, however, attributed the development to the Ramadan season, saying prices would gradually come down after the fast.


He acknowledged the hardship being faced by ordinarily Nigerians as a result of the rising food cost and maintained that the situation would normalise after the month of Ramadan.


LAGOS


The prices of essential food items have also gone up in Lagos, according to a market survey conducted by our correspondents in some markets.


For instance, at the Gowon Estate Market in Egbeda, a Lagos suburb, the price of a 50kg bag of rice has increased to N8, 700.


Hitherto, the same quantity was sold at N8, 000 in the same market.


Giving reasons for the hike in the price, a trader who identified himself simply as Sunday, said the Ramadan period contributed to the increase.


“It is because the Muslims are fasting. They no longer bring as many bags of rice as they used to bring from the North,” Sunday said.


A trader, Mrs. Mary Afolabi, attributed the sudden increase in the prices of some food items to the cost of buying foreign currencies in the country.


According to her, in the last one month, the exchange rate of the Nigerian currency has dipped significantly, especially when compared with the dollar and the pound sterling.


Also, a crate of eggs, which was sold for N680, has increased to N800.


However, the prices of some other food items have not changed.


Still at the same market, the price of a gallon of garri remains N320 as it had been in the last few months.


consumers and traders alike have lamented the increase in the prices of food items, a situation which is gradually taking food out of the reach of the common man.


SATURDAY PUNCH spoke with traders who attributed the sudden increase to the crisis in the North and weather patterns.


A tomato seller at Egbeda Market, who identified herself as Titi Oni, said, “Initially, we bought a basket of tomatoes at N4,000 or N4,500; this was before the rain. When the rainy season started, tomatoes became expensive and this is not unusual to me. It has always been like this.


“Now, a basket of tomatoes goes for N6,000 or N6,500. The same thing applies to pepper. A basket of pepper was selling for N5,000; now, it costs N7,000.”


Emmanuel Okezie, who deals in grains, said the price of beans had gone up and this was due to the Boko Haram crisis.


He said, “We used to buy a bag of beans at N12,000, but with the recurrent Boko Haram crisis in the northern states, it is no longer easy to transport food items from the North to the South. A bag of beans now goes for N15,000.


“The crisis is also affecting the sale of yam tubers. An average tuber of yam used to sell for N300, now it is N500. That aside, another factor we have to consider is the cost of transport; it is rising daily. Most of the food items sold in Lagos are not grown here; they are brought in daily from other states. The traders who bring these food items in would also have to factor the transport costs into their profits.”


A mother of three, who declined to have her name published, told SATURDAY PUNCH that the government was neglecting its duties in providing for its citizens.


“Things were not this bad years back, even if one couldn’t go to school, at least one would be able to feed oneself. This problem of rising food prices is getting worse with each passing day; to eat three square meals a day has become a luxury and it shouldn’t be so,” she said.


DELTA


In Delta State, our correspondent gathered that the much talked about reduction in inflation at the national level had not had any positive effect on the rising prices of food.


This is coupled with the fact that the state has the tag of being an oil-producing state, though most of the oil companies have either moved out of the state or planning to relocate.


In most of the markets visited, our correspondent gathered that traders and consumers in and around Asaba and Warri were switching habits in the face of escalating prices.


Most people interviewed by SATURDAY PUNCH noted that they had started cutting back on the quantity of food they consume as they now buy in small quantities.


At the Ogbeogonogo Market in Asaba, the state capital, sellers and consumers of rice lamented the present situation, which they said was eating deep into their meagre income.


A bag of Mama Africa brand of rice now sells for N9, 800 as against N8,700 two months before, while a bag of Mama Gold, another brand of rice, now goes for N10,000 against N9,000 it was selling before.


Turkey groundnut oil now sells for N1,400 against the former price of N1, 200, while King groundnut oil sells for 1,450 as against N1,300.


At Igbudu Market, Warri, an average size tuber of new yam costs N500, against last year’s N300, while five strands of plantain cost N400 as against N300. An egg now goes for N35 against N25 in the past.


When asked why the prices of food items had escalated, Mrs. Juliet Omafuaire, a seller at Jigbale Market, Udu Road, simply said, “Oga, na so we see am o! Na as we take buy we take dey sell.”




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