Analysis: Legit.ng Weekly Price Check: Why Egusi, Ogbono, Other Major Goods Are Expensive in Lagos Market
- The cost price of most goods in Lagos market is determined mainly by certain factors in the country
- Interestingly, the goods that are affordable in major markets would be expensive in retail markets
- In this New Year, Legit.ng had a chat with a trader in a popular Lagos market, he shared with us the factors influencing the cost price of foodstuff items
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In the first week of the year and the first month precisely, Nigerians were greeted with so many developments in the market, which many claimed it's too early to adapt to, But it's Nigerians, the goat of Africa and we all get to adapt quickly and move on.
But in the case of the market environment, a lot is happening and not all are ready for such change because it is really demanding for their survival level.
Source: UGC
In recent weeks, the cost price of major goods has risen beyond traders' imagination and some were quick to conclude that the economy is a major factor contributing to such development. At the same time, a few noted that it is the usual norm in the Nigerian space.
To the disbelief of many, the goods whose cost price increased in the last quarter of the Year 2022, have witnessed a drop in their cost of purchase, traders attribute this development to the availability of the items.
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Notwithstanding, the above development did not lead to a change in the purchasing power of buyers as traders disclosed they did not make a good profit in last year's festivity; the Christmas and New Year celebrations.
Egusi is the new gold in Lagos market this year 2023 but a trader opined there are factors that informed the drastic rise in the item's cost price.
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Scarcity: Why petrol could sell N800/litre, marketers give crucial information to Nigerians
Source: Original
Why foodstuff items are expensive in Lagos market, Traders spills
In a chat with Legit.ng, a trader who sells major food items and foodstuff items, revealed the forthcoming general elections have nothing to do with the price of goods in the market.
According to the trader, items such as rice and beans, witnessed a drop in its prices while foodstuff items such as ogbono, egusi, crayfish and dry pepper are expensive this period. Adding that vegetable oil are not left out in the recent rise of goods in the market.
Oga Donatus as he is fondly called in the popular Mile 12 international market, Lagos who has been in the business for over fifteen years, highlighted factors inflating food prices, directly and indirectly.
1. Seasonal factors
Seasons play a major role in the availability and scarcity of goods in the market but sometimes, the change in weather determines to a large extent how goods will be available in a particular period within a year.
This is dry season, it is expected for some goods to be expensive because the goods that are being sold are the ones kept after harvest towards the end of last year, hence their cost price would increase because suppliers are selling from their storage barn, the trader noted.
Source: Original
2. Economy
Nigeria's economy is in a bad shape, everything is expensive and the nation is in debt.
The grappling economy has affected various sectors in the country and so, the farmers are lamenting, then the suppliers who purchase from the farmers are also lamenting over hike in the goods purchased so, it is a serious issue that we hope it would be addressed soon.
The economy is not booming and this is evident in the cost price of goods, because if goods are affordable, it is known that such goods are available and supply, is high; but the reverse is the case this period.
If nothing is done, from the look of things in the country at the moment in the polity, disaster awaits us.
3. The pump price of petrol and transportation
The hike in the pump price of petrol plays a huge factor in the rise and fall of food prices in Lagos market.
The hike in petrol price leads to the hike in transportation fares and definitely leads to high cost of carriage which in turn affect food prices.
The price of petrol is increasing in Nigeria because some private depots who have the product have deliberately decided not to sell it for reasons best known to them, this is what suppliers and distributors bank on while offering the goods to prospective buyers.
Source: Original
4. Suppliers and distributors factor
The supply chain also determines the cost price of goods and its cost of purchase in Lagos market.
Most goods are brought into the markets here from neighbouring towns, villages and states, hence, their level of supply influences their cost of purchase.
If the goods are available, you can tell the supply is high, but if they are scarce, the supply is low, which is the case at the market lately. the supply of most foodstuff items are low, this is a big factor affecting our business at the moment, and retailers are lamenting.
5. Market forces
During this period, it is important to note that some market that shops are expensive in Lagos market and to keep one or more, means you have to spend more money and this money is gotten from sales and profit we make daily.
The market visited here in Lagos, also to a large extent, determines the affordability of goods and availability as well.
In major markets here in Lagos, goods are available in large quantities and sold at wholesale prices while in retail markets, goods are sold in retail prices; this information is key for buyers.
Also, when traders pay higher shop rent, they add more money to the cost price of the goods they sell and then, the goods become very expensive, this is the new normal in Lagos market.
Going forward
All in all, some factors are also responsible, but not mentioned above, but we are certain that goods might become more expensive in the coming months.
Meanwhile, the outcome of the forthcoming elections would also determine to an extent how well the listed factors would aid foodstuff prices and availability, the trader concluded.
Legit.ng weekly price check: Lagos trader reveals real reason why bag of rice now sells for N39,000
It's a few days to the Christmas and New Year celebrations, in Lagos and across the globe.
While some are preparing big for the holidays, others are lamenting regarding the events which made up their lives in the year 2022.
The year according to the traders in a popular Lagos market has not been very rosy but they are grateful for life which signifies better days are indeed ahead, as they expressed hope for what would determine their fate in the New Year.
The past few months have been tough for traders in major markets across the country, following the rise and fall of food prices and the reduction of the purchasing power of buyers.
2023: Powerful presidential campaign team shares bag of rice in Edo
The presidential campaign activities of Atiku Abubakar and the Peoples Democratic Party (PDP) have reached a fever pitch ahead of the 2023 general election.
An ally of the PDP presidential candidate, Barr. Kenneth Imasuangbon took it upon himself to stage a charity campaign in Atiku's name and distributed bags of rice to orphanages, hospitals, and villages to celebrate the yuletide period.
Imasuangbon is fondly called the "Rice Man" for his gesture of always distributing rice to the poor annually.
Source: Legit.ng
