During the first week of Ramadan, markets in Abuja, the Federal Capital Territory (FCT) of Nigeria, are witnessing a welcome decline in food prices. This development has provided much-needed relief to citizens observing the holy month, who are seeing their purchasing power improve as the cost of staple foods decreases.
Visits to major markets in Abuja, including Wuse, Garki, and Utako, reveal that prices of essential food items such as rice, beans, onions, and tomatoes have fallen compared to previous months. This reduction in prices is a significant shift, offering consumers some respite from the high costs they have been grappling with.
A 50kg bag of rice, which previously sold for N89,000 before the recent importation surge, is now available for between N71,000 and N73,000 in many markets across Abuja. Similarly, a 25kg bag of rice that once cost between N47,000 and N50,000 now sells for about N33,000 to N37,000. This considerable drop in prices has been attributed to several factors, including increased imports and a stable Naira.
The influx of imported food items has been a game-changer for the local markets. Traders report that the availability of more goods has led to increased competition and, consequently, lower prices. According to Adam Bulus, a trader at Orange Market in Nasarawa State, the improved availability of food items is a key factor in the price reduction.
“Maybe they have released foodstuff to the market from where they kept them…. This has increased supply and brought down prices,” Bulus stated. He added that the stability in the foreign exchange market has likely facilitated the importation of goods without excessive price hikes.
Musa Lawal, a trader at Wuse Market, echoed similar sentiments, noting the small but noticeable differences in food prices, especially for rice and other staples. The federal government’s implementation of a zero-duty rate on basic food items and a VAT exemption on selected food items has also played a crucial role in making these goods more affordable.
The federal government’s temporary zero-duty policy on basic food items, which was in effect from July 15, 2024, to December 31, 2024, has had a lasting impact on the market. This policy, along with the VAT exemption on selected food items, aimed to stabilize food prices and make essential goods more accessible to Nigerians.
Residents of Abuja have expressed their relief and gratitude for the lower food prices during Ramadan. Zainab Usman, a resident of Area 1, described the price drop as a blessing. “Last year, we suffered with high prices, but now we can buy more with the same amount of money,” she said.
Juliet Eta, a civil servant, shared a similar view. “Even though the reduction is not much, it [the drop in the prices of rice, millets, tomatoes, and onions] is a relief. People are suffering, but this will go a long way in helping Nigerians cope with the current economic reality,” she noted. Eta mentioned that she was able to purchase maize, beans, and rice at slightly lower prices compared to the previous month at Mararaba market.
Other consumers across different markets in Abuja have acknowledged the modest reductions, appreciating the relief they provide, especially during Ramadan when food demand is typically high.
Market analysts and experts have weighed in on the recent stabilization of food prices, attributing it to several factors, including government policies and improved security in food-producing regions.
Bosun Alebiosu, a research fellow at the French Institute for Research in Africa (IFRA), emphasized the importance of security in Northern Nigeria for agricultural production. “We often tend to underplay the importance of peace in development-related issues. When farmers could not go to their farms due to persistent farmer-herder conflicts, food prices soared. Now that the situation has improved significantly, food production has increased, leading to price stabilization. However, the federal and state governments must continue prioritizing security in food-producing regions,” Alebiosu explained.
Dr. Adam Abudu of the Society for Peacebuilding and Economic Advancement highlighted the role of government policies and the stability of the Naira in easing the cost of imported food items. “A stable Naira has made importation more predictable. When importers can plan ahead without worrying about erratic exchange rates, it prevents unnecessary price surges in the market,” Abudu noted.
While the recent price relief has been welcomed by traders, consumers, and experts alike, concerns remain about the sustainability of this trend. The impact of government policies, the stability of the Naira, and the security situation in food-producing regions will continue to play a crucial role in determining the future of food prices in Abuja and across Nigeria.
As the holy month of Ramadan progresses, the hope is that the current stability in food prices will be maintained, providing continued relief to citizens and ensuring that the economic reality becomes more manageable for all.
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In conclusion, the drop in food prices in Abuja markets during the first week of Ramadan is a positive development driven by a combination of increased imports, stable Naira, and supportive government policies. While the reductions offer much-needed relief to consumers, the focus must now shift to sustaining this trend to ensure long-term stability and affordability of essential food items.
