- 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 affected the prices of goods and services
- This bothers on the survival of both classes in the society as even the traders’, buyers' and suppliers are affected to a large extent
- This week, Legit.ng visited the market to confirm from traders top goods whose cost prices have increased drastically
Lagos state- In recent times, Nigeria has experienced the worst kind of inflation, one that has resulted in a 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.
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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, 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 a 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 is reduced too.
At the market this week, due to the season, there are goods whose cost prices dropped, but now, they have risen drastically and their supply is very low according to traders.
Traders lament that sales have been affected due to the rise in the cost price of major goods resulting in the reduction of the purchasing power of buyers.
Below is the list of goods whose cost prices have increased exorbitantly. But it is important to note that their cost of purchase was given by traders at a popular market in Lagos state.
At Mile-12 international market this week, there is stability 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 still sells from N30,000 upwards for the long grain while the small grain is sold from N29,000 and below. But some traders sell below 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.
This week, the cost price of rice remains stable.
For beans, traders attributed the hike to the rising insecurity in the country and the high cost of transportation as well but others are of the opinion that the supply also led to its inflating cost price.
Oloyin beans are packaged in small-sized bags and are sold from N27,000 in previous months but now, they are sold from over N100,000 upwards.
Earlier at the market, a bag of beans 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 N100,000 upwards as traders disclosed that the supply is low, adding that the economic situation of the country is another factor affecting the pricing. But a bag of white beans is sold for N75,000.
Recent reports indicate 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 the 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.
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This week at the market, 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 the previous week cost N650 per kilogramme but this week, it has risen to N800, N850 and N900 per kilogramme, depending on your location. Now at the market, refilling 6kg cost N4,500 while 10kg cost N8,500 and N9,000.
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 the item. According to traders at the market, the cost price of ogbono is never fixed, it rises and falls within months.
Seasonal factors affect the cost price of ogbono not its availability. During 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 parts 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 at 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 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 affects cooking oil prices in Nigeria especially the branded ones and now, even the refill are sold at a very high rate.
There are different types 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 are more expensive than the ones purchased from neighbouring countries.
Earlier, at the market this week, a 25-litre of good and well-processed palm oil is sold by some traders from N24,000 upwards and some sell from N22,000 upwards and a 25-litre of groundnut-oil sells from N26,000 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 has 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 fewer quality brands like wool.
The ones that are of high-quality brands are sold from N1,900 before but now they are sold from N2,000 upwards, wholesale price for the big size and the small-sized ones are sold from N1,500 wholesale price. Hairstylists sell from 2,200 and N1,800 respectively.
For crotchet, it is sold from N2,000 upwards before but increased to N2,100 upwards depending on the type 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 the 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 at 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 in low purchasing power which leads to low patronage in the long run.
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