PUNCH
The prices of major foodstuffs and other essential goods have started rising in response to the hike in the pump price of Premium Motor Spirit, popularly known as petrol, following the announcement by President Bola Tinubu that the era of subsidy on the product is gone.
Tinubu had on Monday during his inaugural speech at the Eagle Square in Abuja said the era of subsidy payment on fuel had ended, adding that with the 2023 budget making no provision for it, further subsidy payment was no longer justifiable.
He added that his administration would instead channel funds into infrastructure and other areas to strengthen the economy.
The presidential pronouncement led to an instant resurgence of fuel queues across the country with Nigerians foraging for the premium product. Though Tinubu’s decision received the backing of the NNPCL and the House of Representatives, it has since been resisted by the NLC and the Trade Union Congress of Nigeria.
According to the organised labour, the President cannot unilaterally take a decision on subsidy removal.
Currently, petrol sells for between N495 and N600 per litre across the nation from N185 to N220 until Monday.
A survey conducted by Sunday PUNCH in various states of the federation on Saturday showed that apart from the increase in transport fares, the prices of foodstuffs, soup ingredients, daily provisions and other essential goods had started rising with expectations of further increment as manufacturers and retailers adjust to the new fuel regime.
Lagos and Ogun
In Lagos, the prices of foodstuffs like rice, yam, beans, garri, plantain, yam flour, semovita, corn, frozen chicken, turkey and palm oil have increased with traders anticipating further rise in the days ahead, even as families have started making panicky purchases to stock their homes with foodstuffs ahead of the strike called by the Nigeria Labour Congress for Wednesday to protest the soaring pump price of petrol.
A shop owner at Jakande Market in Lekki, identified only as Madam Linda, said there had been more traffic than usual to her shop by families trying to buy up the available food items in anticipation of further rise in prices and because of the planned strike by the organised labour.
Although the woman, who sells bags of rice, beans, vegetable oil and palm oil, among others, said the prices of foodstuffs had only increased marginally, she predicted that in the coming week, there might be a further surge in prices.
She said, “Many of my customers have said they want to stock their houses with enough foodstuffs because they don’t know what else to expect due to the increase in transport fares.
“It’s also the first Saturday since the month of May ended, so people have enough cash to buy plenty of foodstuffs now before prices go up significantly.”
Linda still sells her old stock of rice for N37,000 per bag, but said when the new stock arrives in the coming week, a bag of rice would likely sell for between N40,000 and N43,000
But another rice seller, Favour Obiora, was already selling a bag for N45,000, explaining that the increase in price was as a result of the rise in transport fares since subsidy on fuel was removed.
“As of two weeks ago, a bag of rice was still selling for N38,000, but now I am selling N45,000 because of the transport charges by suppliers. The cost of transportation has almost doubled; so, we have to increase our prices in order to make profits as well,” she said.