- The cost price of goods in Lagos market continues to rise and this in turn has affected the traders’ profit margin
- The general rise in prices according to the traders’ is attributable to exchange-rate pressures that have persisted on its impact on the prices of goods and services
- This bother on the survival of both classes in the society as even the traders’, buyers' and the suppliers are affected to a large extent
- This week, Legit.ng visited the market to confirm from traders top goods whose cost price have increased drastically
Lagos state- In recent times, Nigeria has experienced the worst kind of inflation, one that have resulted to high level of poverty, food crisis and price hike.
The daily increment in the cost price of goods, edible and non-edible products has taken a toll on the finance of consumers and traders; this has therefore created fear amongst citizens who earn less and spend more.
The rising cost price of food items in the market according to traders is attributed to the grappling economy, the foreign exchange rate and insecurity that have impacted food prices, even making it a difficult task for banks supporting the nation’s economy from collapsing.
Seasonal factors affect the availability of certain goods and their supply in the market but this period, it is a different story entirely as goods have become so expensive that traders are worried about stocking their shops in months ahead to avoid being left in the dark.
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The problem created by the rising prices of goods and services leading to higher cost of living has become too difficult for the government of Nigeria to solve.
This period, fixed amounts of money buy less quantity of goods and services. The real value of money is drastically reduced thus the purchasing power of consumers are reduced too.
At the market this week, due to the season, there are goods whose cost price are sold at reasonable amount before, but now, they have risen drastically and their supply very low according to traders.
Traders lament that sales have been affected due to the rise in the cost price of major goods resulting to the reduction in the purchasing power of buyers.
Below are list of goods whose cost price have increased exorbitantly. But it is important to note that their cost of purchase were given by traders at a popular market in Lagos state.
At Mile-12 international market this week, there is an increment in the cost price of rice; foreign and local rice.
Traders attribute the high cost of purchase of foreign rice to the foreign exchange rate especially the dollar rate.
Now, a bag of foreign rice sells from N30,000 upwards for the long grain while small grain is sold from N29,000 and below. But some traders sell belwo this cost price so as to restock their shop and attract new customers.
For local rice, a bag is sold from N25,000 and below, and the ones that are not very neat are sold from 23,500, N22,000 and below.
Prior to this week, a bag of foreign rice cost N26,000 and N27,000, while a bag of local rice is sold from N24,000 and N23,000 and below.
As it stands, traders revealed the cost of purchase of rice would go higher if nothing is done to the foreign exchange rate that is currently higher than the nation’s currency.
For beans, traders attribute the hike to the rising insecurity in the country and high cost of transportation as well but others are of the opinion that the supply also led to its inflating cost price.
Oloyin beans is packaged in a small sized bags and are sold from N27,000 in previous months but now, they are sold from N30,000 upwards.
At the market, a bag of beans in previous weeks was sold from N70,000 upwards and some traders insist their cost price is given at N80,000 upwards; but this week at the market, a bag of beans (oloone and olotu) are sold from N85,000 upwards as traders disclosed that the supply is low, adding that the economic situation of the country is another factor affecting the pricing.
Recent reports indicates the rising cost of Liquefied Petroleum Gas, also known as cooking gas. As it stands, it is revealed that consumers would spend more to purchase and refill their cooking gas in months ahead.
For some time now, consumers are contending with the hike in the cost of cooking gas as a lot of factors led to its cost of purchase and refill.
It is even more interesting as sellers are also finding it difficult to make good sales due to its astronomical prices.
This week at the market, a 3kg of gas is sold from N9,000 and N9,500 upwards as against its old price of N4,000 and N3,500.
A 5kg and 6kg of cooking gas is sold from N13,000 upwards and N14,000 upwards and 8kg is sold from N15,000 upwards, only at major markets in the state.
The refilling in previous months cost N500 per kilogramme but in recent weeks, it has risen to N600 and N650 per kilogramme, depending on your location.
The rising cost of cooking gas is worrisome as it rises on a daily basis despite the fact that the nation is blessed with abundant gas.
No matter how expensive ogbono is, buyers would not stop demanding for the item. According to traders at the market, the cost price of ogbono is never fixed, it rises and falls within months.
Seasonal factors affects the cost price of ogbono not its availability. This period, the cost price of ogbono is still very high compared to egusi.
A bag is sold from N130,000 upwards, for good and tasty ogbono while the ordinary one is sold from N120,000 and below.
Yam is one item in the market whose cost price increased drastically and according to the traders in the market, the reason is not far-fetched.
This is the season where yams are sold at reasonable prices but the case is different now as yams are very expensive and as it stands in the market now, some traders sell at exorbitant prices because of the scarcity and low supply of the item.
Yams are transported from various part of the country; we have the ones from Abuja, Onitsha, Ilorin to mention but a few.
At the market this week, a tuber of big-sized yam is sold from N1,3000 and N1,500 upwards and a tuber of small sized yam is sold from N1,000 and N800 downwards. This in the market makes the item a hotcake as the ones that are appeal to the buyers’ preference are now very expensive.
The cost price of cooking oil in recent times is higher than due to the rise in the general price of goods in the market.
Sometimes it reduces and at other times it increases. But the dollar rate affect cooking oil prices in Nigeria especially the branded ones and now, even the refill are sold at a very high rate.
There are different type of cooking oil; the branded ones are often very expensive and the ones that are not branded are a bit affordable.
Traders at the market are of the view that the branded ones that are produced locally re more expensive than the ones purchased from neighbouring countries.
At the market this week, a 25-litre of good and well processed palm-oil is sold by some traders from N21,000 upwards and some sell from N22,000 upwards and a 25-litre of groundnut-oil sells from N20,000 and N21,000 upwards.
Hair extensions are always very expensive during yuletide but at the market, traders are worried because they are also struggling with its availability.
A trader at Ketu market gave a detailed explanation of why hair extensions especially the ones used in making braids are expensive.
Mr Eze, revealed to our correspondent that, the cost of manufacturing the products in the country now have increased. The high cost of materials manufacturers used are purchased outside the shores of Nigeria and by the time it gets to the final consumer, a lot is put into considerations so as not to incur debts.
Hair extensions this week increased by over N500 and some buyers who cannot afford it opt for other less quality brands like wool.
The ones that are of high quality brands are sold from N1,900, wholesale price for the big size and the small-sized ones are sold from N1,500 wholesale price. Hair stylist sell from 2,100 and N1,600 respectively.
For crotchet, it is sold from N2,000 upwards and weaves are sold based on the quality of material used and the brands that manufactured them.
Mr Eze added that brands spend more on packaging, high quality of materials, tax, levies and paying of staffs, all these added together results to increment in the cost of hair extensions in the market lately.
He hinted further that in months ahead, buyers would pay more for goods in the market, because they increase on a daily basis now.
From the goods mentioned above, prices of commodities have risen above the income of the average Nigerian.
In the market, goods have continually skyrocketed in an alarming rate as compared to increase over the years, leaving Nigerians groaning in untold hardship.
The present price of commodities in 2021 have shown that on an average scale, prices of goods and services have doubled and in some other cases even tripled; take a paint (bucket) of garri for example which was formerly sold at N350, it now goes for a shocking amount of N1,000 and N1,200 respectively.
This has however affected the profit margin of traders’ and for buyers, it has resulted to low purchasing power which leads to low patronage at the long run.
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