Following the persistent shortage in fuel supply and the
harsh economic climate, there has been an average of 50% hike in the prices of consumer goods and buyers are
In some Lagos markets visited by
our correspondent, including Oyingbo, Iddo, Mile 12, Alade and Ipodo, prices of some food items
like tomato puree, rice, vegetable oil and seasoning had increased substantially.
Our correspondent found out at the Ipodo Market that a carton of Indomie was sold for N1,500 as against the former price of N1,000; a retail pack of Gino
tomato puree(70gm), formerly offered at N1,250, went for
N2,700, while a five-litre keg of
vegetable oil previously sold for
N1,800 was offered for N2,500.
Similarly, the price of a small bag of Semovita, which before now was N900, has gone up to
N1,500. The big one is also selling for N2,400 instead of
A small tuber of yam that sold for N250 before is now going for between N450 and N500.
The price increase has extended to rice, which now sells for
N17,000 a bag instead of N15,000 a few months back.
Buyers have attributed the hike
in prices, which became more
noticeable in the last three weeks, to the lingering fuel crisis.
According to the Chairman, Ikeja Shop Owners Association, Mr. John Okonkwo, the fuel crisis has
resulted in between 100% and 200% increase in transport costs.
“Before the fuel crisis, we spent
N1,000 on transportation to
bring goods from the depots to the city markets; but now, the transport fare has risen to N3,000,” he said.
The President, Manufacturers
Association of Nigeria, Dr. Frank
Jacobs, said the fuel crisis was affecting the logistics of
manufacturing firms, adding that some workers were reporting late for work, while others were paying more on transportation.
The Commissioner for Economic Development, Akwa Ibom State, Dr. Emmanuel Onwiouduokit,
observed that the incomes of many buyers had no command over the goods they were
buying, adding that the situation had made the poor to become poorer.
Onwioduokit, who is also a member of the Nigeria Economic
Council, blamed the situation on the fuel crisis. The cost of transporting goods
from where they are produced to the markets has increased because of the cost of fuel.
This has in turn affected the cost of
living and actual prices of goods.
It is like a cycle,” he said.
According to him, what the government needs to do is to
address the cause of the problem.
“The best way to solve the fuel
supply problem is to remove subsidy and allow full
deregulation of the petroleum sector,” he added.
The economist also blamed the problem on the ongoing foreign exchange crisis.
According to him, the fact that Nigeria operates a consumer
economy makes it easy for prices of goods and services to increase because of the depreciation of
“People have to transfer the
depreciation to their prices. Even when they bought the items before now, they cannot sell it at
the normal price because when they want to replace the items, the replacement cost will be higher,” Onwioduokit stated.