When the Central Bank of Nigeria said the oil-rich nation’s economy would be out of recession by June, many Nigerians found it hard to believe.

Their doubts graduated to unbelief when the Governor of the CBN said that 'prices of commodities are already coming down'.

To clear this assumptions and dispute, Bounce News visited the popular Ile Ekpo Market in Lagos State along the Lagos-Abeokuta Express Way.

What has changed?

The prices of household commodities gave a mixed-feeling about the claims of the CBN.

While the prices of some commodities are going up, prices of some other commodities are refusing to come down.

Price of food stuff

The bottom line is that there is reality in what the Central Bank said about prices coming down.

One truth, however is that the pumping-in of dollars into the forex market has caused stability in the prices of imported goods. Do not forget that Nigeria depends largely on imported good, as very few items are produced locally.

No thanks to the poor state of the nation's energy sector.

For prices of household commodities like garri, rice, beans, vegetables, oil and others alike, there is little marginal difference. While some prices increased from what they were weeks ago, some have taken a downturn.  

Garri, a major staple food in Nigeria, is still on the increase, moving from from 850 Naira to 1,000 Naira per paint bucket. A bag of garri according to a trader sells for about 14,500 Naira.

Beans rose from 250 Naira per Derica and is now sold for 280 Naira.  

Price of food stuff- vegetable

Among the major staple foods, only rice, which is most consumed, dropped from 1,400 Naira per paint bucket to 1,300 Naira.  

A bag of rice now sells for 15,000 Naira. This is a significant drop from its old price that towered between 19,000 and 20,000 Naira.

The drop in the price of rice may have been triggered by two things;

  • It has become cheaper to import rice due to interventions of the Central Bank in the forex market.
  • The production of local rice has also increased due to the government’s rice farmers’ borrower scheme.

The prices of a few other commodities also vary when compered with the what the prices were in March. 

Water-leaf which is used for vegetable soup seems affordable thanks to nature for sending down sufficient rain this season.

potatoes market price

The price of sweet potatoes has also gone up, from 150 Naira per tubers in a small plate to 200 Naira.

Tomatoes is relatively stable in price at Ile Ekpo market, as a basket-full still hovers between 4,500 and 5,000 Naira.

While rice appears to be the only commodity that has truly come down, Nigerians are still looking forward to a time that more household commodities would be affordable especially those who earn the minimum government wage of 18,000 Naira per month.

What the CBN Believes

The Governor of the CBN, Godwin Emefiele, STRONGLY believes Nigeria will get out of economic recession by the end of June, 2017.

Emefiele had a closed-door meeting with the leadership of the Senate on Tuesday and after that meeting he told reporters that the indicators are;

1.   The downward trend in the parallel market as regards the value of Naira against the dollar which has appreciated from as higher as 525 Naira per dollar to between 370 to 380 Naira.

2.   The already confirmed reduction in the rate of inflation by the National Bureau of Statistics (NBS), with subsequent downward trend in the prices of goods.

The CBN has been involved in some form of intensive interventions in the foreign exchange market, resulting in a downward trend in the parallel market price.

For us its simple, people do not care what indicators or graph sheets or forex market analysis; all people care about is going to the market and being able to buy food to eat. That's all.