By Miracle Adebayo
Food price hikes have become a recurring trend during festive seasons, and this year is no exception, particularly with food inflation having risen to 39.93% in November, 2024, compared to 32.84% in the same period last year. Observersmag visited two major markets in Ile-Ife—Oja Tuntun and Adedoyin Market to assess the impact on traders and consumers this season.
Market Dynamics During the Festive Season: A Tale of Two Markets
The usual expectation of every market during the festive period is usually an overcrowded bustling view with overflowing streets. However, this is quite difficult to observe this year, as the market space itself was finding a balance between being quiet and being another regular market day.
This situation varies across different marketplaces in Ile-ife. A visit to the two prominent markets—Oja tuntun located in Ife central Sabo and Adedoyin Market located in Modakeke Ife East— shows quite different experiences among traders and buyers as they express their hopefulness and dissatisfaction towards the status of things in comparison with the economic effects and consumer behaviour.
A Quiet Festive Season at Oja Tuntun
Most of the traders at Oja tuntun complained about the situation of the market operating on low activity despite the festive period. A yam seller remarked with frustration, "By this time last year, the road was blocked with buyers and people trooping in and out of the market. But this year, it feels like a regular market day." Other traders were also of the same point of view as they kept complaining about the low reduction in the market sale rate.
Idayat Ayomide, a foodstuff seller, also confirmed that sales have been significantly lower compared to last year due to the increase in commodity prices. She remarked, "Look at this—since morning, I haven't even sold a full bag of rice."
Buyers at Oja Tuntun also shared their struggles. One buyer admitted to cutting her budget drastically, focusing only on essentials. Another said, “I had to choose between buying clothes and food. I settled for food because it’s the most important.”
A Brighter Picture at Adedoyin Market
One could conveniently say the situation was quite the opposite in the Adedoyin market, as traders here were dealing with a more optimistic scenario in terms of buyers in the market despite the hike in prices of these commodities.
A foodstuff seller reported better sales this year compared to last year, despite the price hikes. She noted a shift in consumer preferences, with buyers opting for staples like garri instead of the usual festive favourite, rice.
“Economic hardship has affected everyone,” she explained, “although I am recording a good sale rate, Garri is my most sold-out good, not many people are even buying rice.”
She further explained that the scenario has nothing to do with a hike in prices but just the economic situation of the country, as the price of Rice has come down when compared to the period of October and early months ahead when it was still being sold for #3500 per rubber.
“Rice is now ₦2,800, or ₦2500 depending on the type you are getting. But people still tend to buy more garri because it is more affordable than rice, so people are making practical choices.”
Similarly, a trader in Adedoyin highlighted consistent demand for other commodities like beans and garri, whose prices remain relatively stable and are more dependent on quality than the season.
A pepper seller also confirmed the steep increase in commodity prices. “Last year, I bought a basket of tomatoes for ₦1,000. During this small festival (Christmas period) I sold a basket for ₦4,000. Today, as of the 27th of December I am selling it out for ₦3,500. This festive period always affects prices of markets like pepper and tomatoes, but It will still drop again after this period.”
Rising Inflation rate and high cost of living
Recently, Nigeria's inflation rate has been on the high side with a steady rise from 33.9% to 34.6% in the month of November 2024. The food inflation has also increased from 32.84% in 2023 to 34.6% in 2024. These developments continue to have an effect on the cost of living marked by a significant rise in the prices of food and services.
Also, a recent premium times investigation revealed that large quantities of staple food including cereals, tubers, vegetables, fruits, produced in Nigeria end up wasted due to inadequate storage processing and transportation facilities.The large quantity waste reflect the magnitude of the biggest trend to food security in Nigeria of which also contribute to the limited supplies of some of the food commodities made available for consumption.
Despite the economic challenges and the high cost of living, trends have shown that the festive season typically influences the prices of goods and food. However, interaction with the market traders point to minimal impact this season but the price instability may persist beyond.