Prices of Rice, Garri, Other Food Items Set to Skyrocket this December as Transport Costs Soar

• Transporters have sounded an alarm about the high cost of food items from December through to the New Year
• The imminent rising costs have been attributed to several factors, including multiple taxation and increasing transportation cost
• They urged the government to take swift action to ease their struggles and maintain the steady distribution of food across the country

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

Amid growing economic hardship and surging inflation, the cost of food items is expected to soar this December as the Yuletide season approaches.

This warning comes from the Amalgamated Union of Foodstuff and Cattle Dealers of Nigeria (AUFCDN), whose members have highlighted various challenges affecting their operations.

In its Consumer Price Index (CPI) report, the National Bureau of Statistics (NBS) stated that Nigeria’s inflation rate surged to 21.09% in October 2022, the highest level on record.

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Christmas food prices to hit new highs

Speaking in an interview, AUFCDN’s national president, Mohammed Tahir, cited the rising prices of Premium Motor Spirit (PMS) and diesel, along with frequent extortion and double taxation on federal highways, as major factors burdening foodstuff transporters.

Tahir revealed that transporting a trailer-load of rice, beans, corn, and other food items from Sokoto to Port Harcourt costs N2.25 million. A similar expense is incurred when moving goods to other southern regions.

He cautioned that food prices are likely to rise further as the Christmas season nears, intensifying the existing hardships faced by Nigerians.

He said:

“The price increase will continue into the New Year.”

Transportation costs are significantly inflated by multiple layers of taxation, including levies imposed by local and state government revenue officials, roadblocks by security agencies, and extortion by "agberos" (street hustlers), along with extra charges at markets.

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Tahir highlighted that areas like the South-East, South-South, and parts of the South-West are especially challenging, with reports of drivers and their assistants facing harassment and physical assaults.

Speaking with Vanguard, Tahir stated that many union members have ceased transporting food items because of the escalating costs associated with the business.

He also expressed disappointment that the government has failed to engage with foodstuff transporters to resolve these challenges despite their crucial role in ensuring the nation’s food supply.

Tahir stressed that, despite the significant challenges, the union is reluctant to embark on a strike due to the potential hardship it would cause vulnerable Nigerians.

However, he called on the government to take swift action to ease their struggles and maintain the steady distribution of food across the country.

Recently, President Bola Tinubu ordered the implementation of a zero-percent import duty and the exemption of value-added tax (VAT) on selected basic food items.

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BoI launches app to check food prices

Meanwhile, Legit.ng earlier reported that the Bank of Industry (BOI) has launched a new app and website designed to provide real-time updates on food prices across eight states in Nigeria.

The app offers comprehensive analytics, allowing users to track price trends based on brand, quantity, and historical data.

The bank hopes to provide price transparency to help Nigerians make purchasing decisions in the market.

Source: Legit.ng