Business

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

Published

3 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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CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

Published

1 day ago

December 20, 2024

Trends Admin

CBN Governor, Olayemi Cardoso

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).

This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.

The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.

The arrangement will be in effect from December 19, 2024, to January 30, 2025.

Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.

Transactions to occur at the prevailing NFEM rate

The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.

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All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.

The circular read in part:

“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).

This window will be open between December 19, 2024 to January 30, 2025.

“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”

The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”

These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.

This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.

CBN permits BDCs to buy up to $25,000 FX weekly from NFEM

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Bitcoin price crashes to $95,000

Published

1 day ago

December 20, 2024

Trends Admin

Bitcoin price crashes to $95,000

The cryptocurrency market experienced sharp declines after the United States Federal Reserve announced a 25-basis point rate cut.

Bitcoin’s price dropped from its record high of $108,267 to a multi-day low of $95,000 within 36 hours.

Amid this turmoil, Paper-hand traders are rushing to sell their assets while the experienced ones are taking advantage of the dip to increase their portfolios.

Bitcoin price drops after Federal Reserve announces rate cut

Bitcoin experienced a sharp decline after the Federal Reserve cut interest rates by 25 basis points for the third time this year.

The announcement led to Bitcoin’s price falling to a multi-day low of $95,000, marking a $13,000 drop within 36 hours.
This pullback followed a recent record high of $108,268 earlier in the week.
Federal Reserve Chair Jerome Powell suggested the central bank may halt further rate reductions due to recent Consumer Price Index (CPI) data.

“Today was a closer call, but we decided it was the right move,” Powell said during a press conference. While rate cuts typically benefit cryptocurrencies due to their risky asset status, this decision appears to have introduced caution among buyers.

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Crypto analysts predict that Bitcoin could face increased volatility in the short term. On-chain data reveals selling pressure has eased since November, but caution remains high. Buyers are closely monitoring Bitcoin’s support levels, particularly around the $100,000 mark, with potential resistance seen at $110,000 in the coming weeks.

Some buyers anticipate a “Santa Rally” a term used to describe the Bullish performance of bitcoin during the Christmas holidays. Historical data on this notion has given mixed outcomes.

In previous halving years, Bitcoin often surged during Christmas week, with price moves of 11% to 25% recorded in 2017, 2020, and 2024.

However, analysts warn that current market conditions, including macroeconomic uncertainty and a cautious Fed, could dampen such expectations.

United States Bitcoin strategic reserve in doubts 

Aside from the federal rate cuts announced by Powell. He also mentioned that the Central Bank is not allowed to hold Bitcoin unless approved by Congress.

This statement cast shadows of doubt on the proposed Bitcoin reserve by Donald Trump during his campaign days.
The President-Elect last week confirmed that his administration hopes to set up a strategic Bitcoin reserve and pilot the dominance of the US in the Global crypto space.
The FOMC chairman’s speech about the Central Bank not being able to hold Bitcoin cast doubts on the proposed Goal by the Donald Trump administration.

Bitcoin price crashes to $95,000

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Dangote reduces petrol price to ₦899.50/litre

Published

2 days ago

December 19, 2024

Trends Admin

Dangote Refinery

Dangote reduces petrol price to ₦899.50/litre

Dangote Petroleum Refinery has slashed the price of its petrol t to ₦899.50 per litre.

Making this known in a statement on Thursday was Anthony Chiejina, Chief Branding and Communications Officer of the Dangote Group.

He said, “Africa’s first privately-owned oil refinery, which previously lowered the price to N970 per litre on November 24, has now announced a new price of N899.50 per litre. This reduction is designed to ease transport costs during the festive period.”

Adding, Chiejina said, “In addition to the holiday discount, Dangote Petroleum Refinery is allowing consumers to purchase an additional litre of fuel on credit for every litre bought on a cash basis.”

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“To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.”

The statement said the refinery was committed to making sure Nigerians have access to premium quality petroleum products that are competitively priced which are also environmentally and engine friendly.