Wholesale marketers are desperate to sell off their old stocks and products they had hoarded, fearing that the recently implemented government policy to allow imports of some agricultural products for 6 months could cost them losses, NewMailNG’s investigations revealed.
On the other hand, many retailers are refusing to take up the old stocks, speculating that in the coming weeks, prices will crash, when the market is flooded with new imports.
The federal government yesterday directed the Nigeria Customs Service to start the implementation of the zero percent import duty and exemption of Value-Added Tax on basic food items.
In his speech on the protest Sunday, President Bola Ahmed Tinubu approved the implementation of zero per cent import duty and exemption of Value Added Tax on basic good items.
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On August 8, 2024, it was reported that the Ministry of Finance had conveyed a letter to the Nigeria Customs Service confirming the development.
Sambo Lawal a wholesale trader of rice and other grains at the Dutse market who spoke with our correspondent said, he wished he could clear his old stock before new products came.
Prices will crash, because once the borders are open, a competitive pricing regime will begin,” Lawal said, adding that “If I am unable to sell before stocking up and prices crash, I will be at a very serious loss, because we bought some of the goods at very exorbitant prices. It is only fair that we sell off before new products arrive.
” I have been calling my office takers and retailers to come and pick some products, but many have refused to come and buy, either due to lack of capital or the fear of buying at a higher cost and not recovering their money when the market crashes”.
The trader agreed that the crash would be a blessing to many, however, he’s still worried about the stored stock.
Madam Chinyere, a retailer and the owner of a neighbourhood stall, is not buying anything, until next week, hoping prices would have crashed by then.
“My small neighbourhood shop is almost empty, but I will wait. My supplier called me last week to come and pick up products, but I am not going,” she said.
“Since last week some products have become very scarce. I can’t buy spaghetti and macaroni. Even if they are available now, I will not buy them, let’s see what happens between now and next week. I am very sure the prices will crash.”
For Jumoke, a single mother of one, the prospects of prices crashing is a welcome development as the past months had been difficult for her.
“[The price crash] will be the best news. I really can’t wait, but until it happens, let’s just take it as one of the stories we hear,” she said.
