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Rising fuel costs push food prices higher

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Food prices across major markets in Lagos surged sharply in March 2026, as rising petrol costs pushed up transportation and logistics expenses, triggering widespread increases in the cost of staple commodities and deepening pressure on household budgets.

This is according to a Nairametrics Research physical market survey tracking 68 food items across Mushin, Daleko, Mile 12, and Oyingbo markets, which revealed a broad-based price uptick cutting across both perishable and non-perishable goods.

The latest data is a sharp reversal from the modest easing recorded in February, with inflationary pressures re-emerging strongly across key food categories. Analysts attribute the resurgence largely to a spike in fuel prices, which cascaded through the supply chain and inflated the cost of moving goods, particularly from northern farming belts into Lagos.

Fuel prices began climbing in late February, with pump prices rising from N875 to N960 per litre. At the same time, the Dangote Refinery adjusted its ex-depot price from N774 to N874 per litre, reflecting global oil market tensions linked to the ongoing Middle East conflict. The knock-on effect was immediate, as transporters passed on higher fuel costs to traders, who in turn adjusted retail prices.

As a consumption-driven city heavily reliant on food transported over long distances, Lagos remains especially vulnerable to such cost shocks. The survey highlights how quickly external pressures translate into higher food prices in urban centres where local production is limited.

According to the report, 43 of the 68 items tracked recorded price increases in March, a sharp jump from 23 items in February. In contrast, only 13 items saw price declines, down significantly from 35 recorded in the previous month, while 12 items remained unchanged, underscoring the limited pockets of price stability.

Despite earlier signs of inflation moderation, the latest figures suggest that underlying risks remain elevated. As of February 2026, headline inflation stood at 15.06%, with food inflation—still the dominant driver—rising to 12.12% from 8.89% in January. The March surge in market prices indicates that inflationary pressures are far from easing.

Among the hardest-hit items were staple foods such as pepper, tomatoes, beans, and fish, with some recording price increases of over 100% within a single month.

Pepper prices posted some of the steepest jumps. A medium bag rose from N32,000 in February to N80,000 in March, while a big bag climbed from N58,000 to N140,000—representing increases of 141.38% and 150%, respectively. Traders linked the surge to a mix of seasonal scarcity and sharply higher transportation costs.

Tomatoes also recorded significant increases. Big baskets rose from N40,000 to N60,000, a 50% increase, while oval varieties moved from N25,000 to N35,000, up 40%. Market sources pointed to reduced supply inflows from northern production hubs, which compounded the impact of rising haulage expenses.

Beans, a key protein source for many households, saw one of the most pronounced increases among staple grains. Brown beans (50kg) surged from N50,000 to N85,500, marking a rise of over 70%, while Oloyin beans increased from N45,000 to N75,000, up 66.67%. Larger bag variants exceeding 50kg climbed to N180,000, representing a 63.64% increase and effectively reversing the price relief observed in February.

Fish prices also rose sharply. Kote (horse mackerel) increased from N5,000 to N8,500 per kilogram, a 70% jump, while Titus (mackerel) rose from N7,000 to N9,500, up 35.71%.

Other food items recorded notable but less dramatic increases. A 0.9kg pack of Olaola poundo yam flour rose by 34% from N10,000 to N13,400, while a big bag of dry onions increased by 21.05% from N95,000 to N115,000. Poweroil (2.6 litres) climbed by 14.68% from N10,900 to N12,500, and a medium-sized Abuja yam rose by 12.5% from N4,000 to N4,500. Prices of palm oil and processed foods such as pasta, beverages, and noodles also edged higher, with increases ranging between 0.32% and 10%.

Despite the widespread surge, a handful of items recorded price declines, mainly within grains and wheat-based products. Wheat products under the Honeywell brand saw consistent reductions across multiple sizes, with the 10kg variant dropping by 14.29% from N14,000 to N12,000.

Semovita prices also trended downward, with the 5kg pack falling by 13.33% from N7,500 to N6,500, and the 2kg variant easing from N3,000 to N2,800. Mama’s Pride rice (50kg) declined by 11.54% from N65,000 to N57,500, while short-grain rice (Royal Stallion) recorded a marginal drop from N54,000 to N53,000.

Garri (white, 50kg) fell by 9.09% from N22,000 to N20,000, although yellow garri prices remained stable. Melon (egusi) saw a modest 4.72% decrease, while ogbono recorded a slight decline of 1.40%. However, these reductions were relatively mild and insufficient to offset the broader surge in food prices.

Twelve items tracked in the survey recorded no price changes between February and March. These included selected vegetable oil variants, yellow garri, maize, milk, and sweet potatoes, indicating isolated areas of stability amid broader volatility.

Market participants across the value chain—buyers, traders, and transporters—largely attributed the price surge to rising fuel costs and logistics challenges. They noted that Lagos’ heavy dependence on food transported from other regions makes it particularly susceptible to such disruptions.

“The cost of moving goods from the North has gone up significantly. Even loading charges have increased because everything depends on fuel,” a transporter at Mile 12 market said.

“Everything changed when fuel went up again. Transporters increased their charges almost immediately, and we had no choice but to adjust prices,” said Mrs Abeni, a trader at Daleko market.

Consumers are also feeling the strain. “Just last month, beans were affordable again. Now it has doubled. It’s becoming difficult to keep up,” said Bro James, a shopper in Oyingbo market.

For small-scale vendors, the situation presents a difficult balancing act between maintaining sales and avoiding losses. “If we increase food prices too much, customers will stop buying. But if we don’t, we run at a loss,” said Tutu, a food vendor in Mushin.

Overall, the findings underscore how rising transportation costs are feeding directly into food inflation, tightening pressure on both traders and consumers. With fuel prices remaining volatile and supply chains still exposed to external shocks, market participants warn that food price instability may persist in the near term, further straining household incomes and deepening cost-of-living challenges across Lagos.



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