NIGERIA’s Naira has officially been declared the world’s best-performing currency by global investment bank, Goldman Sachs and the Central Bank of Nigeria’s Governor, Yemi Cardoso. And there are reliable reports that the Naira will continue to appreciate. Not only has our currency been declared the best-performing currency globally, but the Naira is also now trading at N900 to a $1 – one of the biggest news of the year for me.
Before I proceed, I want to lament the ‘small silence’ in the media about this naira progress. When the naira depreciated, every sector of the media was awashed with this bad news, and as far as many of ‘us’ were concern, the government doesn’t have the strategy to save the naira but today, the same government has done a good job of saving the naira, therefore, I feel it’s only fair to say well done to President Bola Tinubu and the government officials that have recorded this remarkable feat.
Another remarkable feat worthy of commendation is the crash of diesel price by Dangote Petroleum Refinery; a few days ago, in an unprecedented move, Dangote announced further reduction of the price of diesel from N1200 to N1,000 naira per litre. Speaking on the price crash last week in Gombe, Alike Dangote said, “we crashed the diesel price to N1,000 per litre to make the product affordable and reduce the cost of commodities for the average consumer across the country.
Adding that, “it is very imperative to ensure that the prices of essential resources like diesel are accessible and affordable to alleviate financial burdens individuals and businesses face when it comes to production and transportation”. According to him, affordable diesel prices will play a key role in driving economic the growth of the country. It will be difficult for anybody to argue with Dangote’s summation.
The big question in everyone’s lips now is, at least people in my circle, the dollar is trading below a N1000 and diesel is selling for N1000, why are Nigerians to feeling the impact this remarkable feat on the prices of commodities in the country? I had to direct this question to an expert on economy and below was his response to me:
“Hafsat, foods that have been bought at the old exchange rate will still be tied to the old exchange rate. Whether a month or a quarter, it depends on the duration it takes to order and sell. The effect we should hope to see is that the prices have stopped going up. We call it acceleration.
“What the marketers have in stock now was purchased at high prices. If they sell at lower prices, they are going to record losses. So until they replace the current one, that is when they will reduce their prices. But currently, to avoid losses, they will still sell at the rate at which they bought it. We will only start seeing the current prices of things as current stock is sold and new stock is acquired”, he concluded.
If you ask me that’s nothing but sheer wickedness from the marketers, because when the dollar went up, they increased the prices of their commodities, saying, they would have to do that to be able to afford the new high price when their stock is sold out. My question here is, if these people meant well for this country and Nigerians, the decent thing to do is align their prices with the new price and reduced cost of production, transportation and sorts. Why is it that, the ordinary Nigerian has to be the one to pay for an increase and suffer the loss of a decrease every time there is inflation in the land?
I have come to the conclusion that the government is not to be entirely blamed for the high price of commodities in the market, it’s mostly retailer’s greed and I also did a little survey to affirm this summation.
The survey showed that a bag of sachet water is sold to the retailers for N180 in most parts of the country. A bag of sachet water contains 20 pieces; the retailers sell one piece for N20, which amounts to N400. The retailers make N220 profit on N180 investment.
Also, the survey further revealed that a carton of eggs that contains 30 pieces is supplied to the retailers at N1,800. The retailers sell one egg for N120, which amounts to N3,600 for the carton. The retailers make N1,800 profit on N1,800 investment.
The number of commodities being sold at an abnormal profit can keep increasing and increasing my survey reveals because these marketers don’t care. The government must intervene in a situation of rising commodity prices resulting from retailers’ greed. The Nigerian market system has completely failed and the government must intervene. And the intervention should come now.
Other Matters
One friend who is committed to you is better than a million who are only interested in you. Difficult times unveil mythical bonds. The commendable strong bond of loyalty and brotherhood between Yahaya and his successor needs to be emulated.
The exact opposite of this is almost replicated in all the states. The El-rufa’i drama and his successor Uba Sani, isn’t it too soon? Fubara and his predecessor Wike. They say that the people you build today will eventually save you tomorrow, but some of these politicians don’t understand that.
Kabara, is a writer and public commentator. Her syndicated column, Voice, appears on News Point Nigeria newspaper on Mondays. She can be reached on hafceekay01@gmail.com