Food prices are spiking again in Southern Nigeria as trucks conveying food items from the North are prevented from coming South, causing concern for another wave of food inflation.
Prices of tomatoes, pepper, onions and other vegetables have doubled since Friday last week, as fewer trucks of food items made entries into markets across the Southern region.
The situation has put another squeeze on consumers hurting from the pandemic-induced economic fallout that has weakened their purchasing power.
“We normally have nothing less than 200 trucks of tomatoes, pepper and onions off loaded daily in Mile 12 Market, but since Friday we have had less than 100 trucks that have entered into the market,” Idris Abubakar, a trader at the perishable segment at Mile 12 Market, disclosed.
“This is because of the blockage of trucks coming from the North to the South. It has made prices of tomatoes, onions, and other vegetables brought mainly from the North to double,” Abubaker said.
Since the start of the year, terrorism, banditry and herdsmen attacks have intensified, forcing the Amalgamated Union of Foodstuff and Cattle Dealers of Nigeria (AUFCDN) to embark on an indefinite strike action to demand the protection of its members.
The strike has caused the closing of all major routes taken by trucks transporting livestock and food items from the North, where they are majorly grown, to the South, where the markets are, after the expiration of a seven-day ultimatum given to the government to address the association’s concern.
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“I have been at the market since 7am and now it is 1pm, I am yet to purchase anything because of the surge in prices,” said Adebisi Oyebola, a retailer at Ketu Market.
BusinessDay’s survey at major markets in Lagos, Nigeria’s commercial centre, shows that a big basket of tomatoes sold N5,000 last week now sells for N15,000 while a small basket sold N2,500 now sells for N10,000 in Mile 12 Market. This shows about 200 to 300 percent rise in prices.
A bag of pepper sold between N4,500 and N5,000 last week, now sells between N19,000 and N20,000, indicating a 300-percent increase in price.
Similarly, the price of a bag of onions that was sold for N10,000 last Thursday at Mile 12 Market now sells for N25,000, indicating a 150-percent increase.
Inflation in Africa’s largest economy accelerated to 16.47 percent in January 2021, basically driven by food inflation that climbed to 20.57 percent in January – the highest level since July 2008.
“We are going to see rampaging inflation in the country coupled with the recent adjustment of the official rate of naira to N410/dollar,” said Bongo Adi, senior lecturer, Lagos Business School.
“Consumer price index will increase significantly and it will impact liveability adversely,” Adi said, noting the North cannot afford to hold long as most of the products are perishable and need to be taken quickly to where the markets are.
He urged the government to act quickly to avoid reciprocity from the South, saying the country’s economy cannot afford any civil disorder at this time.
The Nigerian economy has been in shambles and GDP per capita has been declining every year since 2016, a sign that the economy is unable to provide sufficient opportunities for its rapidly growing population.
Despite the Nigerian economy just eased out of its second recession in five years, the challenging economic climate still largely remains.
“It is going to be something temporary but it will hurt the economy with very weak wallets, fragile growth, and poverty,” said Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI).
The LCCI has asked the Federal Government to address the insecurity issues in the country and engage traditional leaders and security operatives to address the political tension in the country.
“The government needs to quickly address the issue because it has ethnic coloration and the tension can easily snowball into other problems,” Yusuf advised.
Meanwhile, traders in the North have started feeling the impact of the blockage as their perishable items cannot withstand our traditional preservation methods.
“The South is our main markets and the development is affecting farmers seriously. Lots of tomatoes are lying in the farm,” said Abdulrahsid Magazi, chairman, Vegetable Producers and Marketers of Nigeria, Kano State chapter.
“Farmers are now drying their tomatoes to preserve it while some are taking their tomatoes to neighbouring markets across West Africa,” Magazi said.
