Households seek substitutes as food prices soar 50%

Households in Nigeria are now seeking cheap substitutes to various food items due to their reduced purchasing power amid soaring food inflation, BusinessDay investigations reveal.

BusinessDay checks reveal that the prices of agricultural and other consumer goods have sky-rocketed by over 50 percent in the past month.

A survey at Bwari Market in Abuja showed consumers are shifting to low-priced food items.

Ahmed Musa, a trader at the market said he is finding it difficult to sell his wares because buyers are not forthcoming.

“Customers were complaining about the price of fresh tomatoes before but now most of them have stopped buying. They now buy those dried tomatoes that are sold for N500 per plate and soak them in hot water and salt before using them,” Musa said.

Nigerian inflation increased in May to the highest rate since February 2010 as food, electricity and other energy costs drove up prices in Africa’s largest economy.

The inflation rate rose to 15.6 percent from 13.7 percent the month before, the National Bureau of Statistics (NBS) said on June 14.

As at May, the prices of a bag of fresh pepper and 50kg bag of imported rice were N18,000 and N16,000, respectively, but today, it is N37, 000 and N22, 000 respectively which is over a 100 percent increase for fresh pepper and 46.6 percent increase for the imported rice. The price of 50kg bag of garri rose to N12, 000 from N9, 000 and a 50kg bag of beans increased by 50 percent from N14, 000 to N21, 000. The price of a 25 litre can of groundnut oil rose by 30.7 percent from N9, 100 to N11,900.

However, the price of a basket of fresh tomatoes declined from N35, 000 to N22, 000.
At Mile 12 Market in Lagos the story was the same as the prices of  imported and perishable goods have increased noticeably.
“Eighty-five  per cent of my customers complain that foodstuffs are very expensive. Most of my customers now prefer to buy palm nuts for their stew, use steamed vegetables or even carrots in place of tomatoes,” Chiamaka Udemezue, another trader at the market complained bitterly.

“Two weeks ago, the plantain I threw away was worth more than N5, 000 because there were no sales. It’s like people got tired that the plantain was expensive and they stopped buying,” Udemezue said.

The BusinessDay survey indicated that a bunch of plantains which previously sold for N200 increased by 100 per cent to sell for N400 while the size that was sold for N500 now goes for N1, 000 which is a 100 percent increase.

An 800 gram cup of palm nuts that was sold for N150 is now N200 and a packet of spaghetti now sells for N200 against N100.
Also, a 210gram of tin tomatoes that was N120 is now N150; a 400 gram size now goes for N250 against N200, while a small tuber of yam now goes for between N700 to N800 against N500 sold last week.

At Mile 3 Market, Port Harcourt the story is not different as prices reflected the Mile 12 market experience in Lagos.

Commenting on the fluctuating prices of these key perishable food items, Biliya Adam, secretary of perishable goods section at Mile 12 market attributed the price changes to seasonal factors and the entrance of local varieties from nearby states but warns that the price of fresh tomatoes might shoot up soon.

A few of consumers who spoke with BuisnessDay complained about the high cost of goods and services, especially at a time when other ancillary needs are out of reach of an average consumer.

“The pot of stew I cooked with N800 and augment with tin tomatoes just lasted for two days for a family of three. So, I decided that until the price of tomatoes comes down, I’ll be cooking the local stew with palm nuts or eating rice with steamed vegetables,” Joy Umana, a resident in Lagos said.

“The economy is so tight so my family and I had to adjust to two or sometimes one meal a day. If I get to the market and I cannot afford the meat, I’ll go for the fish and if I cannot afford that I look for something cheaper, even if it’s crayfish to give the soup some taste. The prices of virtually everything in the market have increased and there has not been increase in my salary which is not even regular,” Jane Abutu, a resident in Abuja said.