During the first week of Ramadan, Abuja markets are seeing a slight decline in food costs, providing relief to citizens who observe the holy month.
Visits to major markets in the Federal Capital Territory (FCT), including Wuse, Garki, and Utako markets, reveal that prices of staple foods such as rice, beans, onions, and tomatoes have decreased compared to previous months.
It was observed that a 50kg bag of rice, previously sold for N89,000 before the recent importation of food items, now costs between N71,000 and N73,000 in many markets across Abuja.
The 25kg bag of rice now goes for about N33,000 and N37,000, down from its previous price of N47,000 and N50,000.
Similarly, locally milled rice, which had seen price hikes in the past months, has also become more affordable due to increased supply from imports.
While grains like rice and millet have recorded price reductions, other commodities such as groundnuts, cocoa yams, Irish potatoes, palm oil, and vegetable oil remain relatively high in some markets.
Traders cite Naira stability, importation, and government policies
Adam Bulus, a trader at Orange Market in Nasarawa State, linked the price reduction to improved availability. He stated:
“Maybe they have released foodstuff to the market from where they kept them…. This has increased supply and brought down prices.”
“There is small, small difference in food prices, especially with rice and others,” said Musa Lawal, a trader at Wuse Market.
He stated that the stability in the foreign exchange market may have made it possible for more goods to come in without excessive price hikes.
Other traders also credited the reduction in food prices to the federal government’s zero-duty grains policy.
Recall that the federal government, in July 2024, approved the implementation of a zero-duty rate on basic food items in Nigeria. This is a temporary policy that began on July 15, 2024, and ended on December 31, 2024, on food items.
Also, FG implemented a VAT exemption on selected basic food items.
Consumers speak: A welcome relief, but more needed
“This is a blessing for us. Last year, we suffered with high prices, but now we can buy more with the same amount of money,” said Zainab Usman, a resident of Area 1.
Juliet Eta, a civil servant, also expressed optimism over the development:
“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 that at Mararaba market on Sunday, she purchased maize, beans, and rice at slightly lower prices compared to last month.
Other consumers in different markets across the city shared similar sentiments, acknowledging that while the reductions are modest, they offer some respite, especially during the Ramadan period when food demand is typically high.
Experts weigh in on food price stabilization
Traders and market analysts have said the easing of food prices by the federal government’s recent policies on importation has allowed more foreign food supplies to enter the market, thereby increasing competition and reducing scarcity.
Additionally, the stability of the Naira has made it easier for importers to procure goods at relatively predictable exchange rates, preventing the kind of price surges seen in previous months.
Bosun Alebiosu, a research fellow at the French Institute for Research in Africa (IFRA), attributed the decline in prices to improved security in Northern Nigeria.
“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.”
Dr. Adam Abudu of the Society for Peacebuilding and Economic Advancement also highlighted the role of government policies in food price stabilization.
He noted that the relative stability of the foreign exchange (FX) market in recent weeks has helped ease the cost of imported food items, indirectly affecting local food prices.
“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.”
While traders, consumers, and experts acknowledge the recent price relief, concerns remain over whether this trend will be sustained.