The boom that usually characterised yuletide related products and services was sharply absent in most markets as unprecedented low sales caused by decline in purchasing power of consumers dented the hopes of many traders.
Prices of goods and services have been rising sharply and steadily since June following the commencement of President Bola Ahmed Tinubu administration with thunderbolt reforms, namely removal of fuel subsidy and unification of the official exchange market, leading to sharp increases in pump price of petrol and depreciation of the naira.
Reflecting the upward trend in prices, the headline inflation rate rose to 28.2 per cent in November, the highest since 2005.In response to the sharp decline in purchasing power triggered by this trend, Vanguard investigations showed that consumers could not afford most of the food and gift items needed to celebrate the yuletide season, a development that translated to unprecedented low sales for traders dealing in these items.
The items include rice, gift hampers, cooking oil, seasoning, fish and meat.
Financial Vanguard investigations also revealed that patronage was marked by shift to cheaper brands and reduction in volumes even as consumers avoided non-essential items like Christmas lighting and decorations.
Rice market
Checks revealed that the average price of 50kg of local rice stood at N65,000 as at December 21, 2023.
This indicated over 50 per cent price increase compared to the previous year. The imported brands also recorded significant price increases.
For instance, American Delta, a foreign long grain rice that sold for N46,000 last year now sells for N80,000.
Another foreign brand, Vitali that sold for less than N50,000 in 2022, now sells for N75,000 and more depending on the dealer. The same thing goes for other foreign brands like Thailand Rice.
Though dealers said that there has been no noticeable change in the level of patronage, they told Vanguard that some of their customers, especially associations and business owners, that usually buy in bulk for the end of year gift, have now reduced both the quantity and the sizes they buy.
They said that these categories of customers that hitherto bought 50kg now prefer to buy 25kg instead, while those that bought foreign brands in the past now buy local brands.They also said that other customers have settled for short grains, which are relatively cheaper compared to both imported and local long grains.
A distributor at the popular Daleko Rice Market in Mushin, Lagos, Madam Memunat, said that some unions that usually buy the product in bulk from her during this season, have reduced the quantity they buy.
Her words, “When I asked the leaders of one of the associations that buy from me why they reduced their orders to just 35 bags this year, they complained of the high cost; they said that their budget cannot cover what they usually buy.
“They also said that they disallowed people from booking more than one bag because of the money they have at the time.”
Another dealer, Anastasia Anachusi, however, gave a slightly different account of the situation.
She stated: “People that have one event or the other and some that are travelling are buying. Nothing seems to have changed except that many people now buy local rice, and 25 kg rather than 50kg. Some others buy short grains because they are cheaper.
“As for foreign rice, we do not buy them and stock again except if someone pre-orders it. They are quite expensive and that is why many people have shifted to local rice and short grains to cut costs.”
A buyer that simply identified herself as Ndidi, who also spoke with Vanguard while our correspondent was on visit to one of the markets, lamented the increase especially within a very short notice.
“In fact, I don’t know how we are going to cope in the country next year with the way things are now. Early this month, I priced rice because I wanted to buy it for our association.
“I was told that the Pretty Lady and the African Queen which we were considering buying were N46,000 and N47,000 respectively. But now as we speak today, (December 19th), just two weeks in between, the price of Pretty Lady has gone up to N59,000, while that of African Queen has now gone up to N60,000 and with much pleading.
“I am not even talking about foreign rice because we stopped buying foreign rice for our members two years ago due to the high cost even though we would have preferred to buy foreign brands,” she lamented.
Hampers gather dustVanguard findings on patronage of gift hampers by shoppers show that more people focus more on purchasing staple foods rather than buying complimentary items like hampers.
Consequently, many hampers are seen gathering dust in major supermarket stands and open markets.
Vanguard also noticed that smaller sized hampers are predominant as one of the supermarket attendants said the big ones are too expensive considering the items they contain.
She also said that they have resorted to putting only basic and cheaper items unlike previous years when premium products go into the hampers.
The measure, according to her, is to make the hampers a little affordable.
A visit to Twin Faja Supermarket, along LASU-Iba Road shows that a large size hamper without wine containing items like a carton of Indomie Noodles, a pack of cornflakes, one cabin biscuit, one 4kg custard, as well as other sundry item goes for N25,000.
Hamper dealers have lamented the economic situation confronting shoppers, saying that sales this year have been far below expectation.
A dealer who lamented the situation said that as at December 20 last year, she had sold over 15 hampers but have only sold six so far this December.
She said: “People will just come, admire the hamper, price them and go on their way. It is not funny at all.”
A sales attendant in one of the supermarkets said that they only packaged a few hampers unlike last year when they did many packages.
She said: “Even with the small number, people are not buying it as much. People are just going for the main staple foods that can serve the family for longer periods.”
Tomatoes, pepper prices market
Though tomatoes and pepper, the basic food ingredients, are not spared in the upward price movement, the market findings indicate that tomatoe price is moderate compared to pepper in many Lagos maarkets.
Mr. Adeola Ogunlana, a trader at the popular Ile-Epo market known for perishables such as vegetables told Vanguard prices of tomatoes fluctuate much, adding that though the price has risen compared to this time last year, the Christmas season did not push up the prices much.
He stated: “Tomato price changes, you can buy a basket for N16, 000 today and buy at N13,000 tomorrow. Sometimes when supply is more than demand, price drops slightly.
“If you check the market very well, you will see that tomatoes are more in the market than pepper.”
He said that in the same period of 2022, a basket of tomatoes sold for N10, 000 or N12,000 but it is selling for N16,000 now, representing a 33.3 percent increase in price in one year.
Ogunlana pointed out that they also sell tomatoes in crates aside from the popular basket.
According to him, in 2022, a crate of tomato which sold for N3,700 is now being sold at N5, 500, representing about 50% increase from the previous year.
He told Vanguard that pepper, unlike tomato, is sold in bags, adding that presently, pepper is more expensive than tomato.
While pepper sells for N13, 000 or N14, 500, and sometimes N16, 000, it sold for N8,000 previously, indicating over 80 per cent increase.
Cooking oil price rise 50%
Findings from the open markets in Abuja and Lagos indicate that the prices of vegetable oil and seasonings increased by 50 per cent and 220 per cent respectively as at December 20, 2023 against the prices the same period in 2022.
Checks by Vanguard indicated consumers’ preference for affordable brands such as Kings Vegetable oil which appears to be the lowest in price, with a carton containing four pieces of 5-litre kegs, going for N34,000, representing 41.7 per cent increase from N24, 000 recorded in the corresponding period of 2022.
Laziz Vegetable oil followed with a carton containing four pieces of 5-litre kegs going for N36, 000 in 2023 representing 42.3 per cent increase from N25, 000 in 2022, while Grand Soya oil ranked third with 37.9 per cent increase in price to N40,000, from N29,000 recorded in 2022.
Other notable brands include Power Oil and Mammador Oil. A carton of Power Oil, containing four 5-litre kegs is sold for N45, 000, representing 73.1 per cent increase from from N26,000 recorded in 2022.
Also, the price of a carton of Mammador Oil (4 pieces of 5-litre kegs) increased by 70.4 per cent to N46,000 in 2023 from N27,000 recorded in 2022.
Meanwhile, imported vegetable oil brands, such as Weston Oil, the price of a 5-litre keg, increased by 100 per cent to N23, 000 in 2023 from N11,500 recorded in 2022.
A retailer, Mrs. Nwachukwu Chibuzo, who spoke to Vanguard, said, “the patronage compared to last year was that shoppers went for brands that were pocket-friendly and as a result, we are only able to stock up brands that were in high demand.
“These include Kings Vegetable Oil, Laziz Vegetable Oil and Grand Soya Oil”.
Price of seasoning rises 220%
Meanwhile, the price of a carton of Knorr seasoning, containing 17 packs, increased by 102.2 percent to N18, 200 in 2023, from N9,000 recorded in 2022.
While a carton of Chicken flavor containing 20 packs also increased by 105.3 percent to N19, 500 in 2023, from N9, 500 recorded in 2022.
Other brands include Maggi star, with a pack of 60 cubes selling for N2,500 in 2023 against N750 a pack recorded in 2022.
Nwachukwu added that that there was high patronage of Knorr seasoning cubes as against other brands as the brand created a half pack which costs N550 compared to the bigger pack of N1,100.
While Chicken flavour bigger pack of 100 cubes cost N1,000 and half pack cost N500.
Sales slump in Xmas decoration ornaments
Despite being in the festive season, many celebrants are not patronizing Christmas decoration ornaments and knock-outs which are key symbols of the season.
Mr. Okalekan Shodimu, a dealer in Christmas lighting and ornaments at Igando market in Lagos, said: “Unlike last year when many still purchased Christmas trees and decoration ornaments, this year there is no business at all.
“It is those who have eaten that can remember to buy a Christmas tree.
“The business has been dull and the prices of Christmas trees have increased, likewise the ornaments.
“The price of a ball tree is N30,000. Before it was N15,000.
“Decorative items like Christmas lights which were N5,000 are now N10,000 above depending on the quality.
“The 4-inches tree is N7,000 while the 6 inches tree is N12,000.
“Patronage is near zero. Since last week people were supposed to be purchasing these decorations, but they are not because of the prices and the decision to forgo it for other important things is popular.
“But I thank God that I am still breathing and have hope sales will come.”
Explaining the reason for not selling knock-outs he said, “I don’t have N350,000 to give the Police because it is now an offence to trade or throw knock-outs”.
Mrs Fadeke Moyosire, also a wholesale dealer in knock-out and Christmas decoration ornaments at the popular Idumota market, Lagos Island said the prices of the products change every day because of the foreign exchange rate.
“In this business, I call the suppliers who tell me to wait for three days before a new price is given then you make your order. This is because of the exchange rate.
“I never wanted to add anything for Christmas to my business but I had to because it is a sale made once a year and few customers were calling to ask.
“Last year, this place was buzzing with crowds. I don’t sit down like this, not to talk of having the time to answer your questions because people will be demanding for all sorts of decorations items.
“The patronage is very low this year. I have never witnessed such before except during COVID-19 period.
“Knock-out is the worst because people are not even coming close to it.
“My customers are afraid of selling them so as not to be picked up by the Police.”
High prices depress fish, meat sales
A recent market survey has revealed that both traders and consumers are paying double the amount this year for fish and meat, compared to prices from the previous year.
Notably, the price of the “original Titus” Atlantic mackerel has nearly doubled, with a large carton selling for N78,000 to N80,000, as against N62,000 this time last year.
“Even smaller cartons, once priced at N38,000, now hover between N53,000 and N55,000.”
Speaking with various sellers at the market, they cited the cost of transportation and fuel as major drivers of the price increases.
Madam Titilayo, a fish seller, shared how she struggled to sell a carton of fish in three days compared to the previous year.
She stated, “Last year in December, a carton of fish was around N33,000 to N36,000, but at some point, the price skyrocketed to N47,000, which was the highest it went. This year, that N47,000 is now what we are buying for N78,000 to N80,000.
“So, the small carton we bought for N35,000 is now priced between N55,000 to N54,000 in some places.
“Last year, I could sell all 30 cartons and still have a need for more, but now one carton can hardly finish in three days because it is not easy for people. Last year, the price of one piece of fish ranged from N500 to N600, and at a point got to N800.
“We sold two pieces for N1,500, but now, one piece is from N1,200 for the small size and N1,500 for the big size. The big ones we sold for N1000 are now N1,500.
“Similarly, a carton of Horse mackerel known as Kote was N21,000 to N24,000, but now it hovers between N38,000 to N40,000.
“Kampala fish that we could get 15 kilos or 30 kilos for N18,000, N20,000, and N25,000 now range from N35,000 for 15 kilos and N42,000 for 20 kilos.
“We struggled to finish selling the 20 kilos that weren’t even enough back then. If you ask me, the cost of fuel, which has resulted in the high cost of transportation, is the major reason for this.”
However, Hake fish, popularly known as “panla” seems to be taking over the market. One seller revealed that a carton of Panla last year ranged from N10,000 to N11,000 but has moved up to N25,000 to N30,000.
When Vanguard asked if she noticed more sales in Panla due to sharp increase in price of Titus, Iya noted that people are buying, but the cost of transportation and fuel has affected every area.
“Our sales cannot be compared to last year. Though people are buying, it is not as much as last year.”
The goat meat market experienced the same trend, with prices doubling compared to the previous year.
A broader market trend shows that meat traders are struggling to sell their goods. Butchers who used to sell two goats in a day now struggle to sell one in two days.
Speaking to Vanguard, Oluchi, a goat meat seller, attributed the cause of the price hike to the high cost of transportation and low purchasing power.
He noted that the price of a goat has increased from N40,000 to between N80,000 and N100,000.
He said that he struggles to sell just one goat in a day compared to the previous year when he sold two goats.
Mr Kolawale, another goat meat seller, lamented, “Things are quite expensive, and it is not funny. People don’t buy goat meat like they used to, and it is affecting us too.”
He added, “I used to buy 2 goats and sell them, but now I struggle to sell one goat. We are even tired of the whole situation.”
In the cow meat section, the same trend follows.
Ade, who spoke to our reporter, said, “Cow that I usually bought at N500,000 to N600,000, but now goes for N800,000 to N1,000,000.
“Transportation is high, fuel prices are high, and even the cost of rearing cows for years too is quite expensive.
“The government should consider increasing the salary so that people can buy things in the market.” (Vanguard)