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Tough Easter: Food prices remain high despite naira gain

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Easter is looking gloomy for most Nigerian families, as many cannot afford to celebrate the way they ought to, Theheute reports.

Easter, mostly celebrated by Christians, is seen as a season of sharing and caring for families.

It involves a lot of eating, drinking and outing, but many families do not see themselves enjoying the season because of the hike in the prices of goods and services, which the weakened naira can no longer purchase.

More Nigerians have continued to lament the hike in commodity prices in the country despite the naira regaining its value.

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The hike in the prices of goods and services has also been attributed to the naira to dollar exchange rate.

Recently, the Central Bank of Nigeria released $10,000 to each Bureau De Change to be sold at N1,251/$1, with a view to strengthen the naira.

The apex bank directed each BDC to sell the dollars to eligible customers at a rate not exceeding 1.5 per cent above the purchase price, implying that each BDC was not expected to sell above N1,269/$1.

Despite these interventions by the apex bank, the prices of goods and services have remained on the high side.

A father of four in Ikosi, Ketu, Lagos, Pastor Ginikachi Onuoha, told Theheute that the Easter season was one when he cooked a lot of food and shared with the less privileged.

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But this year, Onuoha said he could not even afford to comfortably feed his family or buy them new clothes for the season.

“It was yesterday (Thursday) that my wife was asking me what we are going to cook for Easter. I just laughed and told her to manage what we have. Even the kids were asking me if they wouldn’t wear new clothes; I didn’t know what to tell them.

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“I had to struggle every day to feed my family. I am into fulltime ministry. My wife is just a tailor. It is just too much load for us to carry. The season is not looking like Easter at all,” he said.

A woman, Mrs Selene Togba, who sells fish at the Bonny Cool Beach in Rivers State, said the season did not look like the Easter period she was used to.

“Before now, you would see people trooping in and buying things, but the market is so empty. You will not even believe that people are celebrating. It is a gloomy holiday for us all,” she said.

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Food prices in Abuja

In Bwari Area Council of the Federal Capital Territory, a pack of spaghetti that sold for N850 two weeks ago now sells for N900 as of Friday.

Also, a bag of 50kg Nigerian rice sold at N65,000 two weeks ago now sells at N70,000.

A bag of sachet water is still selling at N500, and a sachet of water sells at N50.

A yam seller popularly known as Mama Goddy in Bwari Market, Abuja, said the high cost of transportation and scarcity of yam in the market had contributed to the increased cost of the produce.

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She also narrated how difficult it was for her to afford a bag of local rice sold at N65,000 in February and wondered how she’d buy the same commodity now that it was selling for N70,000.

Ogun state

Speaking with one of our correspondents at Ibafo Market, Ogun State, a foodstuffs trader, who simply identified herself Mutiya, said the prices of foodstuffs had not come down.

According to her, a bag of rice sells for between N89,000 and N92,000 while a bag of drum beans still sold for N145,000 as against the former price of N40,000, which it sold last year.

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Also, a carton of Spaghetti was increased from N7,000 to N15,500.

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Another foodstuffs wholesaler, Emma Azubike, lamented the continued increase in foodstuffs.

He said, “Nothing has changed my brother. In fact, the prices continue to increase. The problem is that where we buy from, they have not changed too; you cannot expect us to change.”

He further explained that the price 10kg of Semovita had not changed from the N14,500 it was sold in December, adding that a carton of Golden Penny noodles still sold for N6500.

A fish seller identified as Mary also lamented that the prices of fish had continued to soar.

She stated that as of January, a kilo of horse Mackerel (kote) fish was sold for between N2,800 and N3,000 but had now increased to between N3,500 and N4000; while Herring fish (shawa) was now sold for N2800 from its former price of N2500.

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Similarly, a frozen foods trader, Akingbade, disclosed that the fall in the exchange rate of dollar to naira had yet to affect the prices of frozen foods in the market.

He explained that the price of a carton of chicken which was previously N30,000, was now sold between N45,000 to N50,000, while a kilogramme of the commodity sold for N2,800 now cost N5,000.

He further explained that a kilogramme of turkey which was previously N6,600 a few weeks ago, was now N7,500, as a carton had risen to N51,000 from the previous N30,000.

Our correspondent also gathered that the price of a bag of rice remained at N90,000 in different parts of the Ibafo market.

Lagos markets

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In Lagos, Mrs Chisom Odochi, a businesswoman in Olufowobi, Ikosi, who sells rice and frozen foods, believes that food prices will remain high until after Ramadan.

She noted that while the value of the naira had weakened, it had not translated to lower market prices.

“A bag of local rice, which was priced at N75,000 just two weeks ago, has now surged to N90,000.

“Similarly, the cost of ‘Shawa’ fish, previously priced at N150 or N300, has skyrocketed to N700 or N800. Chicken now sells at N4,500 per kilo, up from N4,300 which it sold last week.”

Economists proffer solutions

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Lending their voices on the situation, a renowned economic expert and Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, described the situation as a “lag between when a policy action is taken and when the impact will be felt.”

He said, “What have been done are things that are being implemented within the last few weeks, especially around the foreign exchange which is very central to all these problems.

“Again, people who had items in stocks got them at a very high price, and until they begin to restock at a cheaper rate, they cannot sell what they bought at a higher price for a lower price. So there is a transition for the effect of the policies to manifest.”

Another economist at Sankore Investment Limited, Jonathan Thomas, said the prices of commodities proved difficult to change because of human behaviour and natural economic principles.

He said, “Another reason could be market distortions. Prices are determined by the equilibrium interaction of demand and supply and that is how prices in the market are determined.”

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Nigerian civil society group demands investigation, reform of NNPCL to support local refining

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Nigerian refineries sabotage investigation

Nigerian Civil Society Organisations demand an investigation into alleged sabotage by NNPCL, urging support for local refining and energy self-sufficiency.

 

 

A coalition of Nigerian Civil Society Organisations (CSOs) staged a protest on Friday at the National Assembly Complex in Abuja, calling for urgent investigations into alleged sabotage within the Nigerian National Petroleum Company Limited (NNPCL).

The group, known as the Nigerian Coalition of Civil Society Organisations, urged the immediate dismissal of the NNPCL Group Chief Executive Officer, Mele Kyari, accusing his leadership of prioritising profit-driven policies over Nigeria’s push for energy independence and economic stability.

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Also read: NNPCL reports 218 oil theft incidents and 31 arrests in Niger Delta

 

The national spokesperson of the coalition, Segun Adebayo, voiced the group’s concerns regarding policies that continue to hinder local refining efforts.

He stated, “Despite Nigeria’s potential to refine fuel locally, vested interests within the NNPCL impose import dependency on Premium Motor Spirit (PMS), costing billions in foreign exchange and creating economic strain.”

According to Adebayo, this dependence on imported fuel has left Nigeria vulnerable to global oil price fluctuations, perpetuating a system that benefits a few while burdening the nation’s economy and citizens.

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The coalition’s protest highlights the role of Nigerian industrialists, such as Aliko Dangote, who have invested significantly in local refineries.

“The Dangote Refinery represents a transformative opportunity for energy independence and economic growth,” Adebayo emphasised.

He accused NNPCL’s leadership of “calculated sabotage” in discouraging local refinery initiatives, citing an ongoing prioritisation of imported PMS over supporting the growth of domestic refineries.

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The group further implored President Bola Tinubu to authorise an immediate investigation into NNPCL’s internal operations to uncover any activities that may be hindering Nigeria’s progress toward self-sufficiency.

“We know President Tinubu wants the best for Nigeria; therefore, we urge him to investigate the cabal’s activities within the fuel sector,” said Adebayo, calling for transparency and accountability.

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Adding to the demands, Benjamin James, the coalition’s national coordinator, proposed a shift in crude oil sales policies, advocating for transactions to be conducted in naira rather than dollars.

James argued that this change could significantly reduce foreign exchange losses, empower local businesses, and strengthen the naira.

“Selling crude domestically in naira would empower local investors, create jobs, and help reduce fuel prices, demonstrating a commitment to Nigeria’s economic sovereignty,” he said.

The coalition’s demands extend to the dismissal of Mele Kyari from his role as Group Chief Executive Officer, accusing him of frustrating local refining initiatives.

They further threatened to escalate protests to the 36 states if their calls for reform are ignored. “We are committed to rallying across the 36 states until this administration meets our demands for transparency, reform, and accountability,” James concluded.

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The protest and calls for policy reform underscore the CSOs’ vision for a Nigeria that leverages its natural resources for the benefit of all citizens, advocating for a national shift toward local production, energy independence, and economic resilience.

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Dangote refinery raises alarm over substandard petrol blending by international firm

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Dangote refinery substandard petrol alert

Dangote Refinery warns Nigerians of substandard petrol being blended by an international firm, posing risks to health and the refining industry.

 

 

The Dangote Petroleum Refinery has raised concerns about a newly leased depot adjacent to its facility, allegedly used by an international trading company to blend and distribute substandard petroleum products in Nigeria.

According to the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, these low-quality fuels are intended to undercut market prices, posing risks to both public health and the local refining industry.

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Also read: Dangote Refinery receives four crude oil shipments under naira-for-crude deal

 

This warning follows recent claims from the Independent Petroleum Marketers Association of Nigeria (IPMAN) that importing fuel is currently more economical than purchasing petrol from the Dangote Refinery.

While IPMAN and other associations assert that they can sell fuel below the refinery’s rate of approximately N1,015 to N1,028 per litre, Dangote Refinery maintains that these products are of substandard quality and potentially harmful.

“We benchmark our prices against international rates and believe our prices remain competitive,” Chiejina stated in a press release on Sunday.

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He added, “If anyone claims they can land PMS cheaper than us, they’re likely colluding with traders to bring in substandard fuel without regard for Nigerians’ health or vehicle durability.”

The Dangote Refinery sells petrol at N960 per litre for ship-based supplies and N990 for truck-based supplies, setting its rates in line with NNPC’s current pricing structure, following Nigeria’s recent deregulation of the petroleum sector.

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While NNPC prices are N971 for ships and N990 for trucks, Dangote Refinery slightly undercuts these, aiming to support domestic refining.

Chiejina also pointed out flaws in regulatory oversight, claiming that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) lacks a functional laboratory to test and detect substandard imports.

He argued that this regulatory gap enables low-quality products to enter the Nigerian market unchecked, exacerbating the problem.

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Highlighting the importance of protecting local industry, Chiejina drew parallels to protective policies in the US and Europe, stating, “It’s standard practice worldwide for governments to protect their industries, create jobs, and sustain the economy.”

He urged Nigerians to ignore misleading information circulated by those who prefer importing fuel over developing domestic refining capacity.

The $20 billion Dangote Refinery, located in Lekki, is focused on delivering high-quality, domestically refined petroleum products.

The company calls on the public to remain vigilant about product quality and supports a robust regulatory framework to secure industry standards in Nigeria’s refining sector.

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Massive fuel shipment and incoming vessels with goods arrive at Lagos Ports

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Nigerian Ports Authority vessels Lagos ports

The Nigerian Ports Authority confirms the arrival of vessels with 40 million litres of fuel at Lagos ports, alongside ships carrying various goods.

 

 

The Nigerian Ports Authority (NPA) confirmed the arrival of two vessels carrying an estimated 40,766,400 litres of Premium Motor Spirit (PMS), commonly known as petrol, at Tincan Island Ports in Lagos on Friday.

This shipment is expected to bolster local petrol supplies and potentially impact fuel distribution across the region.

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Also read: Dangote advocates ending crude oil mortgaging for Nigeria’s refining future

 

In its daily report, the NPA also noted that an additional ten vessels, each loaded with various commodities, are scheduled to arrive at the ports between Friday, 1 November 2024, and 8 November 2024.

These vessels will carry a range of goods, including vehicles, diesel, containers, and bulk wheat.

Three of the incoming vessels will specifically deliver vehicles, with two ships carrying a total of 600 used vehicles and one vessel delivering 600 new vehicles.

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The remaining five vessels will bring in consignments such as AGO (diesel), assorted containers, and bulk wheat, reflecting the diverse import activity at Nigeria’s major port facilities.

The NPA has designated multiple terminals across Lagos for the berthing of these vessels, including the Kirikiri Lighter Terminal, Five Star Logistics, Ports & Terminal Multipurpose Limited, Josepdam Ports Service Limited, and the Tincan Island Container Terminal.

This week’s shipments follow recent updates regarding fuel pricing in Nigeria, where marketers plan to offer petrol below N1,028 per litre, closely monitoring local production costs and availability.

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Amid inflation and ongoing debates about workers’ minimum wage, the delivery of these essential goods will likely be of considerable interest to both businesses and consumers.

The Nigerian Ports Authority’s coordination ensures the timely arrival and efficient processing of critical imports, supporting the nation’s economy and addressing the demand for essential commodities.

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