October Spike: Nigerians Suffer as Cooking Gas and Staple Food Prices Soar

The soaring cost of essential food items has become a pressing concern, with significant price hikes observed in numerous markets across Lagos State. Nigeria is currently grappling with a sharp increase in the prices of goods and services, impacting the lives of its citizens in various ways.

For instance, the price of a 12.5kg cylinder of gas has surged by 44% in October 2023, with an average cost of N13,750 per cylinder. This marks a substantial rise in the expense of cooking gas and adds to the financial strain on households.

Additionally, the price of a 50kg bag of foreign rice also witnessed a 13.5% increase in the same month, now averaging at N47,850, compared to the previous month’s N42,000. These concerning developments stem from a recent food market survey conducted by Infostride News, shedding light on the disconcerting economic challenges facing the Nigerian population.

Nigerians have been grappling with steadily rising food prices for an extended period, which has only intensified following the federal government’s decision to cease petrol subsidy payments and devalue the official exchange rate. The repercussions are evident in a recent report from the National Bureau of Statistics (NBS), which disclosed that Nigeria experienced an 18-year high in headline inflation, reaching a staggering 26.72% in September. This surge in inflation is primarily driven by increases in the prices of food and other essential commodities.

Specifically, food inflation reached 30.64%, a level not seen since August 2005, while core inflation climbed to 21.84%, approaching a nearly 17-year high. The spike in petrol costs has had a cascading effect on transportation expenses across the country, further exacerbating the costs of essential food items, particularly in the southern regions of Nigeria.

The soaring prices of food have significantly eroded the purchasing power of the average Nigerian, given that food constitutes a substantial portion of household expenditures. It’s worth noting that Nigerians typically allocate about 56% of their household budget to food items.

Nonetheless, with the escalating costs of food, transportation, and various services, Nigerians have been increasingly vocal about their struggles, as evidenced in Infostride News’ latest food market survey.

Highlights from the report:

1. The cost of a 50kg bag of brown beans, which previously sold for an average of N32,625, surged by 22.6% to reach N40,000.

2. The price of a 50kg bag of foreign rice increased by 13.5%, now averaging N47,850, compared to the previous month’s N42,000.

3. The price of a big-sized tuber of yam jumped by 12.9%, with the average cost rising from N3,150 to N3,700.

4. The price of a 25-liter gallon of local palm oil increased by 16.8%, reaching an average price of N27,750, compared to the previous average of N23,750. The price of vegetable oil also rose by 13.9%, with an average cost of N35,875, compared to N31,500.

5. On the flip side, the price of a carton of full chicken decreased by 21.7%, now averaging N22,500, down from an initial average of N28,750.

6. A 450g tin of Milo witnessed a 12.7% price drop, now selling for an average of N3,030, compared to the initial average of N3,480.

7. The price of a big bag of pepper decreased by 13.8%, with the average cost falling from N27,500 to N23,750.

Notably, the prices of certain food items like fish, wheat, and milk have remained relatively stable.

Market Insights:

In discussions with market participants, it was revealed that the surge in the cost of cooking gas can be attributed to supply challenges stemming from global crude oil prices, exchange rate fluctuations in the Nigerian market, and logistical issues. Some individuals are concerned that there may be further increases in petrol prices, and these ongoing issues have yet to be addressed.

For instance, a gas trader at Oyingbo Market, Charles, noted, “The price of cooking gas increased due to supply challenges, which is an interplay between global crude oil prices, exchange rate volatility in the Nigerian market and other logistical issues.” He expressed concerns regarding potential further hikes in petrol prices and the unresolved challenges facing the market.

Eunice, a gas user, shared her experience, saying, “I have been going to the gas station for the past 5 days, and I have not been able to purchase gas because of a lack of supply. The queue was too long, and the product is very expensive, so I had to opt for using a charcoal pot to cook.”

Moreover, during an interview with a consumer at the Oyingbo Market, Madam Oke expressed her distress over the escalating food prices. She highlighted that nearly all food items in the market have witnessed significant price increases over the past three months, causing considerable financial strain. She implored the government to intervene and address the ongoing price hikes.

Malam Musa, a yam trader at Daleko Market, attributed the rise in yam prices to the high cost of transportation. He emphasized that the increased expenses associated with petrol and diesel have had a significant impact on the transportation costs of food items from the regions where they are produced to the southern part of the country, ultimately affecting the selling prices of tubers like yam and potatoes.

In a conversation with Kehinde, a mother of three who was purchasing groceries at Mile-12 market, she disclosed that she had to double her monthly food budget in the past two months. This adjustment in her budget has resulted in cutbacks in other areas and reduced opportunities for saving. She explained, “Typically, we spend an average of N80,000 on food for the month, but the recent increase in the price of food has meant spending around N150,000 to N180,000 monthly, while income has remained constant, leaving the family with very little to allocate to other areas like children’s school fees, savings, among others.”

About Infostride News Food Price Survey:

The Infostride News Food Price Survey is a monthly household market survey that monitors the prices of major food items in Nigeria. It places particular emphasis on four key markets in Lagos: Mushin market, Daleko market, Oyingbo market, and Mile 12 market. This survey provides valuable insights into the evolving dynamics of food pricing in Nigeria, allowing for a deeper understanding of the challenges facing ordinary Nigerians as they navigate the increasingly expensive food landscape.