High transport costs lead to higher prices for clothing and food | Popgen Tech


High transport costs are pushing up prices of food, clothing and other items due to persistent fuel shortages as Nigerians prepare for Christmas.

To assess the impact of the festive season, BusinessDay spoke to over a dozen people and overwhelming numbers expressed frustration over the rising prices and scarcity of fuel, which has resulted in increased fares across the Lagos metropolis.

“Now we cannot go to work often because of the high cost of transport due to fuel scarcity,” said Mary Dosumu, a hairdresser who was at Oyinbgo market to make a purchase.

“This is part of what causes the prices of food and other goods to spike during this festive period,” Dosumu added.

Chinyeri Chibuzor, a trader at Oyingbo market, noted that traders will always pass on any additional costs incurred on products.

“Fuel scarcity is also responsible for the continuous rise in food prices. If the government is serious about the price spike, they need to address the petrol shortage first,” Chibuzor said.

He called on the government to come to the rescue of Nigerians, saying most could not afford to celebrate Christmas because of the high cost of living.

The investigation revealed that most filling stations are selling petrol at around 250 nakelange per litre, which is 35 per cent higher than the price it was selling earlier at 185 nakelange per litre. Fuel sold on the black market costs between N350 and N500 per litre, while public transport operators have raised fares on all routes.

Transport from Paka to Oyinyo, which was previously N200, has increased by 100 percent to N400; from Oyingbo to Apapa rose from N200 to N300 and N400 depending on the time of day.

Also read: Sugar tax, foreign exchange shortages hit Nigeria’s food businesses

Baker Rebecca explained how the rise in fuel prices is affecting other sectors of the economy, saying that materials for bread production have become more expensive due to the cost of transporting raw materials and finished products to market.

Nigerians have seen food prices rise this year with headline inflation at 21.47 percent in November as the National Bureau of Statistics (NBS) reported a 9-month steady growth and food inflation at 24.13 percent.

In addition, dire fuel shortages and higher diesel prices in recent months have affected several businesses.

Tailors, who are usually very busy sewing clothes during the festive season, are suddenly singing a different tune. According to them, the holiday season is not visible in sales, as buyers are not interested in buying new clothes.

This time last year, tailor Seyi Olowu said she started receiving orders in October and was fully booked by the end of November. This year, she noted that she brought only the materials needed for gatherings on the weekend.

“Nowadays, people are more concerned about feeding their families than buying expensive outfits,” Olowu said.



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