Nigeria's poultry industry is grappling with declining egg sales as economic pressures squeeze consumer purchasing power, forcing families to prioritize basic necessities over protein-rich foods despite eggs being the country's most affordable protein source.

The Poultry Association of Nigeria's Lagos State chapter has identified a combination of reduced consumer spending capacity, excessive retailer markups, and widespread economic hardship as the primary drivers behind the sector's current struggles.

Economic Reality Hits Protein Consumption

Mojeed Iyiola, chairman of PAN Lagos, emphasized that the challenge extends far beyond the poultry sector, reflecting broader economic difficulties affecting all consumer goods. Families are increasingly unable to meet their nutritional needs as household budgets stretch thin under economic pressure.

"Virtually all consumable goods are experiencing low patronage due to the low purchasing power in the economy," Iyiola explained during a weekend interview. "Perhaps salaries are insufficient to meet the nutritional demands of families, or other expenses take priority over purchasing eggs."

Despite widespread perception that eggs have become expensive, Iyiola maintained that they remain Nigeria's most cost-effective protein option, with farm gate prices holding steady at under N5,500 per crate.

Retailer Markups Compound Consumer Burden

The association has placed significant blame on middlemen and retailers who substantially inflate prices beyond reasonable profit margins. According to Iyiola, some retailers are adding profits of up to N1,000 per crate—far exceeding the recommended N100-200 markup.

"Retailers who buy eggs at N5,500 at the farm gate price are adding higher profits than normal for selfish gains," he said. "Some retailers sell a crate for as high as N6,000 or N6,500, thus making more profit than the poultry farmers who do all the work."

This pricing structure creates a disconnect between farm-level costs and consumer prices, contributing to the perception that eggs are unaffordable while farmers struggle with reduced sales volumes.

Production Costs Remain Challenging

The industry continues to face elevated production expenses, though farmers describe current input costs as manageable compared to previous periods. Lagos State government subsidies provided temporary relief, but that support program has been suspended, leaving producers hopeful for renewed assistance.

"The subvention we received from the Lagos State Government was temporary and helped us while it lasted, but it is currently on hold," Iyiola noted. "We are still expecting palliatives from the government to further cushion production expenses in the sector."

Sector-Wide Impact Beyond Local Markets

Joel Oduware, a poultry processor, highlighted the global nature of the economic challenges affecting the industry. Even typically strong demand periods, such as school resumptions, have failed to generate expected consumption increases.

"Despite schools resuming, we expected an increase in egg consumption compared to when they were on recess, but consumption remains low, especially in some northern states and other regions," Oduware observed.

The processor acknowledged that while price reductions might stimulate demand, any adjustments must account for production realities. "We could reduce the price of eggs somewhat instead of experiencing a constant glut in the sector. However, any price reduction must factor in production costs," he explained.

Industry Seeks Balance Between Affordability and Sustainability

The poultry sector finds itself caught between maintaining viable operations and addressing consumer affordability concerns. While eggs continue to offer exceptional nutritional value per naira spent, the combination of economic hardship and retail markup practices has created barriers to consumption that threaten the industry's stability.

The situation reflects broader challenges facing Nigeria's food system, where essential nutrients become increasingly inaccessible to ordinary families despite local production capacity. Industry leaders continue to advocate for government intervention and fairer retail practices to restore market balance and ensure protein security for Nigerian households.