Despite Naira Gain, Prices Of Food Items Continue To Surge

Despite the persistent appreciation of Naira against international currencies, especially the dollar, prices of food items are still surging, LEADERSHIP learnt.

The Naira has appreciated since the beginning of this month following the Central Bank of Nigeria (CBN)’s recent intervention in the forex market.

However, the value of the local currency continued to rescind its gains at the parallel market closing at N1,230 to the dollar on the streets.

The current exchange rates signify major improvement from the low of about N1,850 to a dollar in February this year.

But the gains have not yet reflected in the prices of staple food items in the market as prices continue to soar, by between 20 to 50 per cent in the last one month.

Our correspondents went around markets to compare. Food prices one month ago and now, and their findings did not reveal any price drop, rather the prices were escalating.

Currently, a 50 kilogramme (kg) bag of imported rice is retailing at N73,000, the same price as last month. Meanwhile, a small paint bucket of Garri has increased significantly from N2,700 to N3,500 between last month and this month.

Similarly, a carton of spaghetti that was sold for N15,000 and a little above last month is now selling at N16,500. Furthermore, Knorr seasoning cubes have undergone an increment of N200 from its initial cost of N1,100.

In contrast to these developments are significant reductions in noodle prices. Previously priced at N7,400 per 70-gram carton, noodles can now be obtained for just N5,280.

However, carbonated beverages are experiencing a price hike, with Coca-Cola PET bottles now retailing at N3,300 as opposed to the previous cost of N2,500. American Cola has also increased in price from N2,500 to N3,100. Similarly, malt drinks for pets have gone up from their original price of N4,000 to N4,100. Additionally, a fearless drink that previously sold for N3,700 is now priced at N3,800.

Miss Glory Lawrence recounted purchasing a half-paint measure of garri on Saturday morning for the sum of N1,300; however, upon returning to buy garri on Sunday evening, she discovered that the same quantity is now priced at an increased rate of N1,700.

Mrs. Piece Okoro, on her part, expressed concern over the current market prices being exorbitant, despite previous claims that the rising prices food items and other commodities were  influenced by the depreciating value of the naira to the dollar.

“For instance, the yoghurt I used to buy was N1,700, and when I went to the market this past week, they sold it for N4,400. As a mother, how can I buy it for my child? It’s not uncommon to take yoghourt. So nothing is changing; everything remains the same,” she said.

At Morenike Oil store located in Ipodo market in Ikeja, Lagos, prices of branded groundnut oil in 5-litre containers increased from N11,500 to N12,000 between February and April this year; while costs for 3-litre is N7,000 and 2-litre is N5,000.

The store owner, Morenike Owolabi said: “For now, I still sell old stock; maybe after I finish selling it, but some information I gathered from a WhatsApp group where they update us on prices shows things are coming down gradually. The ones I have observed have a difference of N500 and N1000 on a carton of groundnut oil. From the refilled groundnut oil, we can see that there is a difference of about N12,000 because a drum was sold at N400,000 but is now selling at N388,000.”

At Ipodo Market in Ikeja, Funmilayo Ilupeju said, not all food prices are coming down. For instance, a bag of sweet potatoes is N65,000 as against what it was last month at the market, which was N55,000. She said, price surge continues despite Naira value gain.

A fish seller, Oluwabunmi Shola, on his part, said, the fish she used to sell at N1,500 is now selling at N4,000, which has reduced patronage. However, a carton of croaker fish that was sold for N90,000 is now selling for N80,000.

“Before now, I sold four cartons of fish per day, but now I find it difficult to sell one carton. Also, the size of the original Titus fish is N2,500, but before now, when you put three of the small sizes together, we still sell at N3, 000. Things kept going up in the market, and yet people were shouting dollar, dollar. For crockerfish, I can still say maybe the dollar affected it because it was being imported, but how about the ones we get here in the country?” he queried.