List Of Foodstuffs Whose Prices Have Dropped Due To Naira Appreciation

The appreciation of the Naira against the dollar and other global currencies has led to a gradual decrease in the prices of some commodities in the domestic market.

According to analysts at Financial Derivatives Company Limited, the prices of some food items have begun to adjust in line with the sustained naira appreciation.

In an email report to investors released at the weekend, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said the Naira at both the official and parallel markets rebounded to ₦1,260/$ and ₦1,125/$, respectively.

According to the report, the prices of rice, sugar, flour, and noodles have decreased.

“Notably, prices of some commodities like rice (50kg) decreased by 5.26 per cent to N90,000, sugar fell by 5.88 per cent to N80,000/bag, flour experienced a decline of 7.81 per cent to N59,000/bag, and noodles (carton) witnessed a significant decrease of 15.22 per cent to ₦7,800/carton,” he disclosed.

Rewane explained that prices will likely reflect the naira appreciation as more businesses begin to stock up their inventory.

“In the short term, we anticipate further moderation in commodity prices as the Naira sustains recovery due to improved forex supply. Consequently, inflationary pressure is expected to slow in the coming months,” he added.

The Central Bank of Nigeria (CBN’s) recent foreign exchange (FX) market sanitization policy, has put the Naira on a steady path to recovery since hitting an all-time low of ₦1,915/$ in February at the parallel market.

The rebound in exchange rates was also supported by the boost in forex inflows and the CBN’s sale of dollars to the Bureaux De Change (BDCs).

Foreign portfolio investments have climbed to $2.3 billion in just the first two months of 2024.