Price of Flour (50kg) Went Up By 52.9% to N13,000

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Tuesday, August 11, 2020 / 9:06 PM / FDC / Header Image Credit: FDC Limited

 

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Nigeria's forex shock resulting from the 70% precipitous fall in the price of oil (Q2'20) has reinforced the CBN's resolve to ration forex in defense of the Naira.  This has forced most importers to blend their forex from various sources at a rate higher than the converging rate of exchange of N381/$.

 

One of the victims of this process is the flour milling industry. The price of flour went up by 52.9% to N13,000 (50kg). It was N8,500 a year ago. This means smaller or lighter loaves of bread or a shift to yam and garri whose prices are also rallying as a result of cross elasticity of demand. Garri is currently N15,000 per 50kg bag.

 

The slides below provide an overview of developments in the domestic and global commodities market and the likely impact of forex rationing on prices in the Nigerian market. 


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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