Nigerians grapple with high cost of goods, services

Nigerians have continued to grapple with galloping food prices as a current survey in some major markets shows that prices of goods and services have significantly increased, worsened by removal of fuel subsidy and Naira devaluation.

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

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

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 per cent of their household expenditure on food items.

A visit to some of the major markets in Lagos shows that the price of a 50kg bag of brown beans that used to sell for an average of N32,625 in September rose by 22.6 per cent to sell for N40,000 by the end of October.

Also, a 50kg bag of foreign rice also increased by 13.5 per cent 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 per cent

Similarly, the cost of a 25litres gallon of local palm oil rose by 16.8 per cent 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 per cent to sell for an average of N35,875 from the previous average price of N31,500.

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

Reacting to the increase in the price of gas, a gas retailer in Egbeda area of Lagos, expressed his fears of a further hike in the cost of cooking gas since the prevailing issues are yet to be addressed.

“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 was very expensive.

A market leader in Alimosho area of Lagos, Madam Ogbe, 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 are affecting our purses. The government needs to intervene on these continued price increases,” she lamented.

Similarly, a civil servant in the state, Mrs. Adesina 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.

“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.