Sales of electronics, building materials and fabrics across the country have dwindled due to increase in prices as the scarcity of foreign exchange (FOREX) bites harder, checks by Daily Trust have shown.
Our correspondents who visited major markets in Lagos and Abuja yesterday observed that the sharp increase in prices of commodities, especially imported ones, has affected patronage of many items.
Inflation reports released by the National Bureau of Statistics (NBS) showed that the nation’s inflation rate jumped by 4.3 per cent in a year from 8.5 per cent recorded in March last year to 12.8 per cent in March this year.
The rate of US dollar at the parallel market as at yesterday was N322 to a dollar, double the official exchange rate fixed at N199 by the Central Bank of Nigeria (CBN). Most importers are now sourcing the forex in the parallel market.
From Lagos Mainland to the Island, all the electronics shops visited had jerked up the prices of items on their shelves such as DVDs, television sets, home theatre, freezers and power inverters among others.
In Cash and Carry, Ikeja, one of the foremost electronics dealers, an official who sought anonymity, confirmed that the foreign exchange scarcity was responsible for the increase in prices.
“I can tell you that new prices of our products are much higher now compared to last year because of the dollar crisis”, he said.
For instance, it was discovered that a 200AH SUKAM Inverter battery which was sold for N64,000 last year now costs N76,000.
At Mastoofy Electronics along Oba Akran road Ikeja, it was learnt that an LG mini home theatre Audio 4130s which was sold for N28,000 last year now goes for N53, 800. Also, the 623OS which cost N32,000 before is now sold for N58,000.
A mini Scamfrost freezer which was sold at about N60,000 last year, now costs N80,000, within the space of six months.
At the Alaba International Market, the home of electronics shops in Lagos, all the dealers interviewed attributed the price increase to the foreign exchange scarcity.
Mr. Andrew Okafor, who sells electronics such as television sets and home theatre, lamented that prices of the products have doubled because importers refused to reduce the cost of items in the market. He said a Samsung 32 inches TV which was sold for N30,000 is now N42,000.
On building materials, the director, Mtech Construction Company, Mr. Ayo Moses, said the price for aluminium has increased compared to last year.
He said a 40 by 80 inch sheet which was sold in the market for N5,000, now goes for N6,500.
He explained that the cost of casement window which they did before for N22,000 has increased to N30,000.
The story is the same in the nation’s capital, Abuja, a development that has rattled many consumers.
Daily Trust checks across markets in Abuja showed that the cost of goods, both imported and locally manufactured, have almost doubled when compared to last year.
Electronics, vehicle spare parts, computer accessories, and luxury goods remain the worst hit by the price hike.
A used auto spare parts dealer at the Gudu Market, Emmanuel Chukwuma, told Daily Trust that the worst affected were spare parts for BMW, Range Rovers, Honda and sports cars.
Foodstuff prices also soared between last year and this year, a development that led to a jump in the nation’s official inflation rate.
In food stock, a 50kg bag of rice that sold for less than N9,000 last year now sells for about N13,000 to N14,000.
The market survey showed that prices of beverages, vegetable oil, cosmetics and toiletries have also risen drastically in the last one year.
One of the latest moves by the federal government to check the soaring increase in foodstuff prices is the recent order by President Muhammadu Buhari for the release of 10,000 tonnes of grains from the National Strategic Grains Reserves for national distribution.
The decision to release the grains is seen as a measure to counter food price increases and the exploitative tendency of traders and middlemen.
A consumer, who was shopping at the Utako Market, Rakiya Luka, told this reporter that she was rattled by the hike in prices of goods.
