Business

N30k for bag of rice, crate of eggs now N2k… traders grapple with low sales amid rising food prices

Published

2 years ago

November 22, 2021

The prices of food items continue to soar across major markets in Lagos, as traders complained of low sales amid declining purchasing power.

This is according to a market survey conducted by The Cable.

Recently, the Food and Agricultural Organisation (FAO) warnedthat global import bills could reach record levels in 2021 — a 14 percent jump from the 2020 record.

The food outlook report said the spike in global food prices would weigh heavier on the side of low-income countries like Nigeria.

Joseph Aleekwe, an elderly trader, who started his business with N7000 in the 1990s at the Alaba Rago market, Lagos, reminisced on “good old days” when he started trading.

“I started my business with N7000. I rented a shop and stocked my shop with food items with that amount of money,” he said.

“But today, N7000 cannot even buy a bag of wheat.”

Aleekwe’s claim was correct as the price of a bag of wheat now sells at N17,000, a 21.43 percent jump from N14,000 previous months.

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PRICES INCREASE EVERY DAY – TRADERS

For traders at the popular Iyana Iba market, most prices of food items have escalated in the last few months, thereby diminishing purchasing power with them witnessing low sales return.

“The prices of items increase every day. If you come to the market tomorrow, you will not get the same price you will get today,” some of the traders said.

“We don’t know what will happen as we are entering a festive season now. For most of us, we are even looking at how to get more money to buy items and sell during the season.”

EGG JUMPED BY 67%, RICE 20%

The price of local rice (50 kilogrammes), which used to be N20,000 in the first half of the year — rising by 15 percent — increased to N23,000.

Foreign-made rice (50kg), on the other hand, surged from N25,000 in the first half of the year to N30,000, signifying a 20 percent increase.

Also, vegetable oil (25 litres) had a market price of N23,000 but increased to N25,000, up by 8.7 percent.

A crate of medium-sized eggs jumped from N1200 to N2000, year-on-year, representing a 67 percent increase.

A big basket of tomatoes was N19,000, with a small basket traded for N4500. A 10kg size of semo went from N4800 to N5300, while a bag of corn that used to be between N8000 and N9000 doubled its price to about N19,000 and N22,000.

A loaf of bread also recorded an increase in price from N350 last year to N500 in 2021. A bag of garri was purchased at N12,500 — increasing by 4% — from N12,000 recorded in the same month, the previous year.

A bag of groundnuts increased from N48,000 in October to N52,000 in November.

A carton of croaker fish is now N30,000, and a medium-sized frozen chicken (full) rose from N1,700 in October and N1,500 in November 2020 to N2,000 in November.

COST OF BEANS DROPPED

A bag of brown beans — was 80,000 in October — decreased to N65,000, representing 18.75 percent drop. Despite the fall, the price represented a 62.50 percent surge compared to November 2020, when the price was N40,000.

The selling price of a bag of white beans also decreased by 0.08 percent from N60,000 in October to N55,000 in November. It was 30.95 percent higher than the purchasing price of N42,000 in the preceding year.

Also, one derica of beans (four tins) fell from N700 to about N550.

Shansu Salisumukhtar, a trader at Alaba Rago market, told TheCable that the decline in the prices — after it soared to N100,000 earlier in the year — could be attributed to the inflow of newly-harvested beans into Nigerian markets.

“New beans is in the market… that is why the price is going down,” he said.

The Cable

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Finally, NERC unbundles TCN, creates new system operator

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2 days ago

May 4, 2024

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Finally, NERC unbundles TCN, creates new system operator

The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).

The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.

The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.

By this order, the TCN is expected to transfer all market and system operation functions to the new company.

The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.

The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.

Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”

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Naira depreciates again, trades at N1,402/$

Published

3 days ago

May 3, 2024

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Naira depreciates again, trades at N1,402/$

The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.

Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71

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Appeal court takes over NURTW case as NIC withdraws

Published

4 days ago

May 1, 2024

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Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.