Despite the gradual recovery of the Naira against the United States dollar, prices of food items remain inflated in Kaduna state. At the last check, Monday, February 26, the explainer gathered that the live exchange rate of the USD to NGN was at N1469.11 to $1.
This represents a gain of N196.5 when compared to the N1,665.50/$1 it traded on Friday last week.
The Naira has also experienced a considerable value at 7.62% to reach N2100 against the Great British Pound (GBP) in the parallel market, otherwise known as the black market.
The price of the pound against the naira marked a notable increase of 7.62%, with the currency strengthening by N160.00 compared to the previous day’s closing rate of N2,260.
However, in Kaduna, the Explainer gathered that despite the appreciation of the local currency, the prices of essential items are still at elevated levels. A 50kg bag of foreign rice surged to over N80,000 while local rice was at N58,000 on Monday, February 27.
The cost of Dangote and BUA cements respectively stand at N8,200. All these prices are higher than the ones recorded earlier in the month.
Some rice dealers attributed the increase in the price to the ban on the importation of foreign rice into the country. Some local traders also told the Explainer why the gradual recovery of the Naira had not deflated the cost of items.
“Yes, we are aware that the Naira is rising but it has no positive impact on the economy because the prices of goods and services are still high,” said Haruna Saidu, a pepper seller in Kaduna.
Saidu explained that the hike in the price of transportation which was occasioned by the fuel subsidy removal was also a major factor contributing to inflation, adding that “government must look into it.”
Meanwhile, the recent inflation data from the National Bureau of Statistics (NBS) showed that food inflation rose to 35.71% in January 2024, the highest level since August 2005.
This means that, as of February, inflationary pressures have increased further on consumers, even though the local currency has shown great signs of recovery.
