Recent evidence has brought to light concerning disparities in food prices between the wholesale and retail markets in Nigeria, raising questions about fair competition and its impact on consumers.
While global food commodity prices have shown a consistent decrease since March 2022, consumers in Nigeria have been facing a notable surge in food prices, according to the UN Food and Agriculture Organization’s Global Food Price Index.
The National Bureau of Statistics (NBS) in Nigeria reported a staggering 17-year high in monthly food price inflation, reaching 29.3 percent in August 2023.
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This trend has sparked concerns among consumer advocacy groups and prompted the development of a tool called the “Fair Food Price Monitor,” jointly created by Consumers International, representing global consumers, and Nigerian consumer organizations like the Consumer Advocacy and Empowerment Foundation and Consumer Awareness Organization.
This tool aims to track and analyze the relationship between food prices at different stages of the supply chain in Nigeria, utilizing data from various sources, including the National Bureau of Statistics and FEWS NET.
Initial findings from the Fair Food Price Monitor have highlighted significant discrepancies between retail and wholesale prices for crucial food items.
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The analysis reveals that the retail prices of several essential food products have surged at a much faster rate compared to their wholesale or market prices.
For example, between January 2022 and August 2023, the retail price of yams soared by 74 percent, while the wholesale price experienced a comparatively lower increase of 60.3 percent.
Similarly, groundnut oil saw a stark difference, with retail prices rising by 56.3 percent during this period, while wholesale prices for groundnuts increased by only 35.3 percent.
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These disparities in price increases between wholesale and retail markets have raised concerns about potential market inefficiencies, lack of fair competition, and their repercussions on consumers.
The discrepancy indicates a need for further examination into the factors contributing to these substantial price differences, as consumers grapple with the impact of soaring food prices amidst decreasing global commodity rates.
