the big rip-off€¦ · sura is 20% more expensive than oyingbo 10000 15000 20000 25000 30000 35000...
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![Page 1: The Big Rip-Off€¦ · SURA IS 20% MORE EXPENSIVE THAN OYINGBO 10000 15000 20000 25000 30000 35000 40000 45000 Garri (yellow) Beans (Oloyin) Tomatoes Food Prices (N) Oyingbo Iddo](https://reader035.vdocument.in/reader035/viewer/2022081617/604f849ec711bb0de91d8e8a/html5/thumbnails/1.jpg)
The Big Rip-Off(Sura traders take customers to the
cleaners )
![Page 2: The Big Rip-Off€¦ · SURA IS 20% MORE EXPENSIVE THAN OYINGBO 10000 15000 20000 25000 30000 35000 40000 45000 Garri (yellow) Beans (Oloyin) Tomatoes Food Prices (N) Oyingbo Iddo](https://reader035.vdocument.in/reader035/viewer/2022081617/604f849ec711bb0de91d8e8a/html5/thumbnails/2.jpg)
20% more
expensive
OyingboSura
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SURA IS 20% MORE EXPENSIVE THAN OYINGBO
1000015000200002500030000350004000045000
Garri (yellow) Beans(Oloyin)
Tomatoes
Food Prices (N)
Oyingbo Iddo Sura
• Garri 5%
• Beans 11%
• Tomatoes 23%
Price difference in tomatoes wider due to seasonality
![Page 4: The Big Rip-Off€¦ · SURA IS 20% MORE EXPENSIVE THAN OYINGBO 10000 15000 20000 25000 30000 35000 40000 45000 Garri (yellow) Beans (Oloyin) Tomatoes Food Prices (N) Oyingbo Iddo](https://reader035.vdocument.in/reader035/viewer/2022081617/604f849ec711bb0de91d8e8a/html5/thumbnails/4.jpg)
REASONS FOR DISPARITY
Sura Oyingbo
Geographical location Closer to Ikoyi, VI,
Lekki
Yaba, Ebute Metta
Disparity in income • Rents are more
expensive
• Flat (avg) = N5mn
• Rents are cheaper
• Flat (avg) = N1mn
Elasticity of Demand Less price sensitive More price sensitive
Logistics & transport
costs
Additional cost of
moving items to Sura
Landing point of agric
commodities
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IS PRICE DISCRIMINATION SPECIFIC TO NIGERIA?
• Price discrimination is not Nigeria
specific but a universal phenomenon
• It is a characteristic of imperfect
markets
• Reasons include:
• Different demand elasticity
• Market segmentation
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3rd Mainland Bridge Closure 6 months from July 24th
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IMPACT OF 3RD MAINLAND BRIDGE CLOSURE
• Disruptions in food supply
• Traffic congestion as motorist use
alternative routes
• Spike in food prices (15.18%)
• In spite of the harvest season
• Reduction in average food
consumption per person
• As consumers rationalize their
spending
![Page 8: The Big Rip-Off€¦ · SURA IS 20% MORE EXPENSIVE THAN OYINGBO 10000 15000 20000 25000 30000 35000 40000 45000 Garri (yellow) Beans (Oloyin) Tomatoes Food Prices (N) Oyingbo Iddo](https://reader035.vdocument.in/reader035/viewer/2022081617/604f849ec711bb0de91d8e8a/html5/thumbnails/8.jpg)
OUTLOOK
• Price discrimination is here to stay
• It is a natural function of higher logistics costs and location
• Fuel costs will have direct impact on commodity prices
• Using diesel trucks is more efficient than petrol trucks
• In the end, price equilibrium is the ultimate goal
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PANDEMIC IMPACT ON FOOD PRICES
Food Items Jan’20 Jul’20 % change
Tomatoes (Big Basket) 8,000 35,000 337.5
Garri (Bag) Yellow 7,200 21,000 191.7
Yam 1 Tuber (Large) 800 2,000 150.0
Pepper (Big Basket) 6,000 15,000 150.0
Onion bulb (Big Bag) 15,000 30,000 100.0
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