By Maryam Yahaya | Melinda Nwankwo P.C
The recent increase in the price of food and other essential commodities in recent times, all over the country, has been attributed to a number of factors such as the removal of fuel subsidy, insecurity, and other unfavorable policies of governments. The result of this is spreading a lot of concern in several quarters and to contribute to moves to ameliorate the impact on the economy, the raw Materials Research and Development Council (RMRDC), through its Sokoto State Coordinating Office, has undertaken a market survey to identify the primary cause(s) of the rise in food prices in the state through the findings of staff of the Council in Sokoto State Nigeria:
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As the price of food and other essential commodities continues to rise, the removal of fuel subsidy, government policy interventions, and insecurity have exacerbated the situation.
President Bola Ahmad Tinubu in his inauguration address on May 29, 2023, declared the abolition of petrol subsidies. Following the announcement, the Nigerian National Petroleum Company Limited (NNPCL) authorized its outlets Nationwide to sell petrol for between N480 and N570 per litre, a near 200 percent increase from the initial price of less than N200.
The spike instantly caused an increase in transit fares and costs of goods and services, including foodstuff, by varying percentages.
The National Bureau of Statistics (NBS) reported that all measures of inflation rate rose in June 2024, albeit at a slower pace. Headline inflation increased to 34.2 percent in June 2024 from 22.8 percent in June 2023 and 34.0 percent in May 2024. The statistics office said the inflationary pressures remain driven by currency depreciation, with the official exchange rate averaging N1471/US$ in June 2024 compared to N769/US$ in June 2023 and rising imported food inflation (36.4 percent y/y). The NBS noted that the headline inflation remains dominantly driven by food inflation, which rose to 40.9 percent year-on-year, up from 40.7 percent in May 2024 and significantly higher than 25.3 percent in June 2023. And also, core inflation rose to 27.4 percent in June 2024, from 27.0 percent in May 2024 and 20.1 percent in June 2023.
In an effort to advise the government on the best course of action to address the situation, the Raw Material Research and Development Council (RMRDC), a Federal Government parastatal with the mandate for the development and optimal utilization of the nation’s vast industrial raw material resources for sustainable industrial growth, conducted a market survey with the aim of identifying the primary cause(s) of the rise in food prices.
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A market check carried out by the RMRDC Sokoto Coordinating Office on food prices across two markets in Sokoto State, namely, Sokoto Central Market and Tsohon Kasuwa,(Old Market) shows that the prices of food items have been on a steady rise in the last three months.
The food items monitored include cowpea, rice (paddy), rice (milled), garlic, onion, millet, sweet potato, sorghum bicolor, and guinea corn.
Traders in these two (2) major markets have blamed the withdrawal of fuel subsidies and insecurity for the country’s soaring food prices.
Market Perception
Upon interaction with some of the traders, they expressed concern over the consistent hike in food prices, urging the state to act quickly in order to alleviate the suffering of its citizens.
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According to the survey, a metric tonne of millet, which previously sold for N600, 000 to N610, 000, now ranges between N800, 000 and N1, 000,000.
A metric tonne of milled rice sold between N1,100,000 and N1,102,000 is now sold for N1,200,000 – N1,600,000, while a metric tonne of rice paddy sold between N800,000 and N1,000,000 is now sold for N1,000,000 – N1,200,000.
A metric tonne of sweet potato now costs N200, 000, up from N75, 000 previously, while a metric tonne of onions cost N700,000 to N900, 000.
A metric tonne of garlic that was formerly sold for 900,000 is now N1, 950,000, while a metric tonne of sorghum bicolor is now N3, 000,000, up from N2, 000,000.
Traders Lamentation
At Tsohon Kasuwa market in Sokoto state, a food merchant, Mal Nuhu, criticized the current status of food prices and how the price increase has worsened over time, affecting traders’ and consumers’ purchasing power.
“When I consider how goods, particularly food products, are rising in this country, I ask myself a question: is it still conceivable for these things to fall?
“Unlike before, our customers must now cut their demand due to a decrease in purchasing power. Things have unexpectedly gone up, resulting in a decrease in trading activities in the market” he said
Mal. Kabiru, a trader at the same market, stated that the price of some food items keep rising while others have been relatively consistent for some period.
The removal of fuel subsidies, fluctuating foreign exchange rates, floods that have adversely impacted the production of grains, and national insecurity have been the main challenges identified. Due to insecurity, the farmers are unable to go to their farms. The increased cost of transportation which stems from the hike in fuel price is added to the cost of food commodities.
In Sabon Birni Local Government of Sokoto state, over 20,000 hectares of farmland has been abandoned by farmers due to the activities of bandits, making it difficult to cultivate essential food crops this year. The local Government is one of the worst hit by bandits and cattle rustling in the state. Over 2000 people have been killed since 2017 and it is estimated that about 2.7 billion Naira worth of properties have been destroyed.
In June 2024, bandits abducted 70 farmers in Lajinge and Dan-Tudu communities of Isa Local Government Area of Sokoto state because they could not raise the N20 Million Naira protection levy imposed on them.
These, the traders termed as unpleasant, and urged that the government do the needful in terms of policy and ensure security and safety of citizens so that these farmers can return to their farmlands in due course.
In general, commodity prices in all of the markets visited followed similar trends, with prices either rising marginally, or changing dramatically from the previous months.
Find below the foodstuff commodity price survey for the month of June, July and August:
Sokoto Central Market
|
S/N |
Commodity Agro Based |
Unit |
June |
July |
August |
TOTAL |
AVERAGE PRICE |
|
1. |
Cowpea (White) |
Mt |
N1,00,000.00 |
N1,300,000.00 |
N1,600,000.00 |
N3,900,000.00 |
N1,300,000.00 |
|
2. |
Millet |
Mt |
N800,000.00 |
N800,000.00 |
N 1,000,000.00 |
N 2,600,000.00 |
N 866,666.00 |
|
3. |
Guinea Corn |
Mt |
N900,000.00 |
N1,000,000.00 |
N 1,100,000.00 |
N 3,000,000.00 |
N 1,000,000.00 |
|
4. |
Rice (Milled) |
Mt |
N1,200,000.00 |
N1,400,000.00 |
N 1,600,000.00 |
N 4,200,000.00 |
N 1,400,000.00 |
|
5. |
Rice (Paddy) |
Mt |
N800,000.00 |
N1,000,000.00 |
N 1,200,000.00 |
N 3,000,000.00 |
N 1,000,000.00 |
|
6. |
Onion |
Mt |
N700,000.00 |
N800,000.00 |
N 900,000.00 |
N 2,400,000.00 |
N 800,000.00 |
|
7. |
Garlic |
Mt |
N1,500,000.00 |
N1,700,000.00 |
N 1,950,000.00 |
N 5,150,000.00 |
N 1,716,666.00 |
|
8. |
Sweet Potatoes |
Mt |
N200,000.00 |
N200,000.00 |
N 200,000.00 |
N 600,000.00 |
N 200,000.00 |
|
9. |
Sorghum Bicolor |
Mt |
N3,000,000.00 |
N3,000,000.00 |
N3,000,000.00 |
N9,000,000.00 |
N3,000,000.00 |
Old Market (Tsohon Kasuwa )
|
S/N |
Commodity Agro Based |
Unit |
June |
July |
August |
TOTAL |
AVERAGE PRICE |
|
1. |
Cowpea (White) |
Mt |
N1,00,000.00 |
N1,300,000.00 |
N1,600,000.00 |
N3,900,000.00 |
N1,300,000.00 |
|
2. |
Millet |
Mt |
N800,000.00 |
N800,000.00 |
N 1,000,000.00 |
N 2,600,000.00 |
N 866,666.00 |
|
3. |
Guinea Corn |
Mt |
N900,000.00 |
N1,000,000.00 |
N 1,100,000.00 |
N 3,000,000.00 |
N 1,000,000.00 |
|
4. |
Rice (Milled) |
Mt |
N1,200,000.00 |
N1,400,000.00 |
N 1,600,000.00 |
N 4,200,000.00 |
N 1,400,000.00 |
|
5. |
Rice (Paddy) |
Mt |
N800,000.00 |
N1,000,000.00 |
N 1,200,000.00 |
N 3,000,000.00 |
N 1,000,000.00 |
|
6. |
Onion |
Mt |
N700,000.00 |
N800,000.00 |
N 900,000.00 |
N 2,400,000.00 |
N 800,000.00 |
|
7. |
Garlic |
Mt |
N1,500,000.00 |
N1,700,000.00 |
N 1,950,000.00 |
N 5,150,000.00 |
N 1,716,666.00 |
|
8. |
Sweet Potatoes |
Mt |
N200,000.00 |
N200,000.00 |
N 200,000.00 |
N 600,000.00 |
N 200,000.00 |
|
9. |
Sorghum Bicolor |
Mt |
N3,000,000.00 |
N3,000,000.00 |
N3,000,000.00 |
N9,000,000.00 |
N3,000,000.00 |
