- Food prices in Nigeria has been on the decline in recent weeks, especially grains and other basic items
- Nigerian traders offer some reasons for the recent drop in prices and how long it may last
- The federal government recently initiated some intervention programmes in the agricultural sector to ensure food security
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
In recent weeks, Nigerians have seen a slight decline in the price of food items nationwide. In some cases, the drop recorded is as steep as 40%.
This is a major relief for Nigerians, especially after the consistent months of surging inflation recorded in 2024.
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Traders have now offered reasons for the drop in food prices, explaining how long it would last.
Fuel price has resulted to lower transportation costs
The major reason identified for this drop is the reduction in fuel prices. Recall that Dangote Petroleum Refinery reduced fuel prices twice in February, and the Nigerian National Petroleum Corporation Limited (NNPCL) followed suit.
Traders pointed this to be one of the reasons behind the drop in food prices. Ms. Nse Fache, a businesswoman, told Leadership News that the price drop is very obvious, particularly among grain foods.
Garri dropped from about N3,500 for a paint of ijebu garri to N2,500, and even lower for other types, while beans and rice prices dropped up to 40 percent. Even packaged products like Semolina also recorded a slight price decline.
Fache said;
“You know, fuel is the problem for everything. Now that the pump price of fuel is reducing, it is also affecting the price of commodities”.
Food demand is dropping
Another factor playing a role is the reduced demand caused by the lowered purchasing power among Nigerians.
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The secretary of Onigbongbo Millers Association, Sunday Ogwurumba, confirmed in an interview that the price of maize has dropped from about N80,000 per bag to a range of N60,000 to N70,000 and credited this drop to decreased demand.
According to him, the millers are no longer getting advanced orders from customers because of lower purchasing power among the traders and customers.
He added that the seasonal changes and transportation costs may also be playing a role in price drops, especially for products like tomatoes and others that are now in abundant supply.
FG intervention and FX stability
Some experts have credited the recent drop in food prices to intervention programmes, especially the efforts of the Central Bank of Nigeria to stabilise the foreign exchange sector.
This had to some stability for the naira, although the naira still declined last week despite the interventions.
Mr. Kehinde, a lawyer and farmer, explained that this is the reason there may not be visible price changes for staples like yam and cocoyam that do not have any direct correlation with the FX rate.
Expert says food prices will surge again
In related news, a former Special adviser to the immediate past President Muhammadu Buhari, Mr. Dolapo Bright, has explained why the decline in food prices is not sustainable.
Mr. Bright noted that the dry season harvest production in Sokoto, Kebbi, has led to an abundance in items like Onion, tomatoes and pepper, causing prices to decline.
He also referred to the several government intervention programmes that have led to lower prices and explained why they cannot be sustained.
Proofreading by James Ojo, copy editor at Legit.ng.
