NIGERIA – Dufil Prima Foods Limited, the maker of Indomie Instant Noodles, has announced a price reduction for its noodle brand, aiming to maintain affordability among Nigerians.

Temitope Ashiwaju, the company’s group corporate communications & event manager, explained the rationale behind the price reduction, citing a favourable shift in operational costs.

He emphasized the company’s commitment to passing on benefits to customers, asserting that maintaining affordability is a responsible action.

Following a recent survey conducted by BusinessDay across various stores in Lagos, the report indicates a decrease in the price of the 70g Indomie Regular Chicken noodles, now priced at N250 (US$0.19) from N300 (US$0.23) last month. Similarly, the 40-pack carton of Indomie has seen a reduction to N10,000 (US$7.58) from N12,000 (US$9.09).

Before this adjustment, Indomie was priced higher compared to other brands such as Mimee (N200) and Honeywell noodles (N250).

Ashiwaju highlighted Indomie’s long-standing presence in Nigeria and its understanding of consumer needs, expressing the company’s intention to lead by example in price reduction.

We are never going to take advantage of the populace. We aim to make profits fairly,” the spokesman affirmed. “That is why we are committed to keeping our products affordable for Nigerians.”

Ashiwaju’s statement refutes speculations suggesting that the price reduction stemmed from low patronage.

Dufil Prima’s initiative has been lauded as one that could prompt other brands to follow suit, as Indomie is considered a price setter in the noodles market, according to retail experts.

Over the past nine months, the inflation rate in Africa’s biggest economy has accelerated to the highest largely on the back of the federal government reforms including the removal of petrol subsidy and naira devaluation.

The National Bureau of Statistics reported that Nigeria’s headline inflation rate has continued to rise, reaching 31.70 per cent in February,

According to the report, food inflation, which constitutes 50 percent of the inflation rate, rose to 37.91 percent from 35.41 percent. And it is on course to hit an all-time high this month due to a combination of rising demand, higher transportation costs and worsening insecurity.

The World Bank’s Nigeria Development Update report highlighted a surge in the number of poor people, reaching 104 million in 2023 from 89.8 million at the beginning of the year. This signifies a concerning trend of rising poverty levels.

Despite economic challenges, the formal market for noodles in Nigeria witnessed substantial growth, with sales value increasing by 38.2 per cent year-on-year to N427.2 billion (US$324M) in 2023, as per a report by Euromonitor International. This indicates the enduring popularity and demand for noodles in the country.

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