High transport costs undermine food price relief – Report

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us High transport costs undermine food price relief – Report Transport October 28, 2026 12:00 am FILE: A cross-section of some foodstuffs

Nigeria’s recent decline in food prices is offering limited relief to households as high transportation costs, shrinking purchasing power and unofficial road levies continue to undermine the benefits of cheaper produce, according to the SBM Jollof Index Q3 2026 survey.

The index recorded an 11.5 per cent decline, or 8.5 per cent after adjustment, but the report found that falling market prices had yet to translate into meaningful improvements in household food security.

The decline in northern markets was largely driven by increased supply, with traders in Kano and Bauchi reporting larger volumes of produce and corresponding price reductions. In the South, however, weaker demand forced traders in Lagos and Abuja to lower prices as consumers struggled to afford food at previous rates.

“Both produce a lower index reading, and they are not the same event,” the report stated, warning that demand-driven price reductions could indicate exhausted purchasing power rather than genuine relief.

“A supply-led fall can persist throughout the harvest. A demand-led fall measures exhausted purchasing power and signals the ceiling has been reached, not that relief has arrived,” the survey added.

Despite the decline, transportation costs remained high, limiting the extent to which lower farmgate prices reached consumers.

According to the report, Kano was the only market to report some easing, with diesel prices falling from about N1,400 to N1,100, with the Kano-to-Kaduna route experiencing relative calm.

In contrast, Ibadan traders quoted fuel prices of between N1,380 and N1,400, while Bauchi respondents said transport costs had risen annually since the removal of the fuel subsidy.

Calabar traders reported increases of five to 15 per cent, while respondents in Lagos and Abuja said transportation expenses absorbed much of the savings from cheaper produce.

“Food got cheaper this quarter in spite of the cost of moving it, not because of any improvement in it,” the report observed.

The report showed that unofficial road charges have further compounded the burden.

Kano traders reported three police checkpoints and two vigilante stops between the Gezawa farm gates and Yankaba market, with each collecting between N500 and N1,000. Additional charges were reportedly imposed at the Kaduna junction on goods coming from the south.

In Bauchi, traders said failure to pay could lead to delays, causing perishable goods to spoil. Traders in Anambra, Abuja and Oyo also cited unofficial charges and checkpoint-related expenses as major challenges.

The report noted that such levies add predictable expenses to food distribution, particularly for perishable products vulnerable to delays.

Market price reductions also take longer to reach consumers than increases, as traders seek to avoid losses on stock purchased at higher prices.

While perishable goods are generally repriced on the same day, protein products take two to three days to reflect price changes.

“Packaged goods, including rice, oil and seasoning, take one to two weeks in Kano and up to a month in Bauchi. In Calabar, traders wait until roughly three-quarters of old stock has been sold.

“They can’t sell stock bought at the old price at a loss,” the report explained, highlighting why retail prices often remain elevated after wholesale costs decline.

Weather conditions have also produced uneven outcomes. Although harvest-related increases in supply benefited 11 markets surveyed, flooding in Port Harcourt damaged fish and poultry farms, contributing to higher food prices and rising inflation in Rivers State while the national rate declined.

“The same rainy season that filled the northern farmgates flooded Port Harcourt, ruined fish and poultry farms there, and pushed Rivers State inflation up while the national rate came down,” the report stated.

For households, lower prices have restored some food items to their meals, but the gains remain limited.

A housewife in Kumbotso, Kano, who had stopped buying chicken and switched to eggs and soybeans, has resumed purchasing one chicken weekly after the price of a kilogram fell from N7,000 to N4,500.

In Gwale, another respondent said they had resumed preparing stew daily as the price of a cup of pepper fell to N1,400 from N2,500 last year. A household in Bauchi also returned to buying tomatoes and pepper in bulk, preserving part of the produce for future use.

However, rising staple prices continue to constrain household budgets. A Sabo Gari respondent said the household had not resumed bulk rice purchases because a 25-kilogram bag of local rice increased from N22,700 to N24,000.

In Ibadan, one respondent restocked garri, rice, pepper and tomatoes, while another could afford only garri.

“Market prices have fallen, but our income has not increased,” the Kano survey round summarised.

Abuja households identified rent, school fees, transport and electricity as competing demands on their earnings, while Calabar respondents said the cost of living remained higher than their income.

Another Ibadan respondent said lower prices did not put additional money into household accounts, adding that the same salary could not support bulk purchases even when food became cheaper.

The report held that the decline had restored some vegetables and protein to household meals but had not revived bulk buying or changed the arithmetic of household budgets.

Akinlotan is a journalist at Punch Newspapers with over eight years of experience reporting on politics, social justice, motoring, railways, and aviation. His work focuses on accountability, public interest, and social change, producing stories that inspire reform and amplify underrepresented voices. Akinlotan’s reporting reflects extensive newsroom experience, editorial insight, and a strong commitment to accurate, impact-driven journalism.

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