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Nairaland Forum / Nairaland / General / Politics / Artificial Inflation Of Prices In Nigeria (4917 Views)
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Artificial Inflation Of Prices In Nigeria by fratermathy(m): 5:00pm On Jan 21, 2017 |
Nigerians can be quite a funny group of people. It is no news now that the country is undergoing a major economic recession. Lots of people are starving and hanging on the balance between life and death, many more work and earn less, and some have lost their jobs altogether. Our currency's purchasing power has greatly reduced and cost of manufacturing goods is high. However, most of the so-called "inflation" experienced today are artificial. If you go to the market now, you'll see that the costs of locally produced items and foodstuffs have been artificially inflated in order to maximise profits by the sellers. The price of oil, which we had traditionally produced in the country over the years, has tripled because some "market men and women" came together to increase the price and they gave silly excuses for the increment. Recently, the price of beef has also increased. Nigerians consume cow meat more than any other meat source and cows are abundant. I wonder how recession, dollar scarcity, fuel increment, etc, affected cow meat production. Furthermore, costs of local groceries have also inflated. Most retailers artificially increase the price of their stocks by adding between N10-N500 across board on the prices of all their products. I have a neighbour who has made it her habit to add money to all her goods in the name of "recession". The irony is that if you go to the shops of honest retailers/business men and women, the prices remain the same. Is it that those in the latter group aren't affected by recession? Worse still, some reduce the quantity of commodities and still sell at a higher price in a bid to defraud people. Some deliberately procure substandard items and still sell at a higher rate. Such evil of man against his fellow hungry man in the name of business! Recently a woman's house was set ablaze because she bought "fake kerosene" from the black market at the rate of N500 per litre. Even at that rate, they still mixed it to make excess profit! Is that not evil? I do not deny that the costs of certain items have tripled "genuinely" due to manufacturing/production costs. However, some of these "Southern" retailers/kiosks owners/market sellers, etc, take pleasure in using the recession as excuse to make double, sometimes triple, their profits. I emphasized "Southern" because Northerners hardly do this. I don't mean to bring religious sentiments into this but let us be honest to ourselves here. I used to buy a small pack of batteries for my remote control at the rate of N120 since this recession started. Just recently, I went to an Hausa's quarters in the city where I live and was surprised that the same battery was sold at N80! This is a whole N40 difference!! Is it that the Hausa man selling it doesn't make profits? I can go on and on about how we defraud ourselves, especially in Southern Nigeria, and how we artificially inflate prices of goods, and even services, in the name of recession when we truly know that costs have not changed in the market. However, I think I have made my point. My main suggestion here is that government, especially at the local level, should look into this matter and make legislations to control inflation of commodities artificially, especially locally produced ones. Machineries for enforcement should also be put in place to ensure strict observance of the law. A ceiling rate has to be placed for some commodities and any seller whose prices surpass the rate must be arrested, fined or taken to court. The suggestion above will make the burden of the recession lower on the most affected persons such as students and low income earning households. We need to be accountable and honest. Business, while profit oriented, should be coloured with honesty and the interest of buyers at heart. Nigerians need to start the change from ourselves. We need to reorient our mindsets and stop making things more difficult for others and ourselves. I am Iroro Mathias Orhero and this is my humble submission. I'll appreciate contributions from financial gurus and those savvy with the issue I have raised. Do well to correct my impressions if they wrong or educate me if I have misconceived of something. 13 Likes 4 Shares |
Re: Artificial Inflation Of Prices In Nigeria by angeltolly(f): 5:10pm On Jan 21, 2017 |
Sebi na we Nigerians, the one trouble we dey cause, even devil dey learn work. Na Greed dey kill us so. Ogbono is now 400/cup...see o, dem dey import am? What of Palm oil... I heard its 800/bottle can you imagine? Pure water is 150/bag ![]() ![]() Which kain wahala be this now? I'm just tire ![]() fratermathy: Greed knows no religion. All these people are the same regardless of their religion 8 Likes 1 Share |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 5:16pm On Jan 21, 2017 |
angeltolly: That is exactly my point o. Sellers will just have a meeting and increase prices of things without considering the effects on the masses. Not everyone in the society has the luxury of earning much to meet up with the high costs of things. What's more annoying is that these increments have nothing to do whatsoever with the recession! They are purely artificial. The kind way God go take judge Nigerians ehn, dem never even develop am yet. |
Re: Artificial Inflation Of Prices In Nigeria by angeltolly(f): 5:23pm On Jan 21, 2017 |
fratermathy: Lols. God self just dey look us with our wickedness both in high and low places. More reason I said it's not religion based. Na all of them 1 Like |
Re: Artificial Inflation Of Prices In Nigeria by Pavore9: 5:29pm On Jan 21, 2017 |
It is sad. The loaf of bread l bought here in Nairobi for 50 shillings in 2012 is what l still bought it this morning despite the fact the dollar which was exchanging for 85 shillings in 2012 is now exchanging for 103 shillings. Bought 6kg of cooking gas in 2013 for 1,350 shillings but it is presently delivered to homes at 800 shillings. Our pains are self inflicted. 7 Likes 1 Share |
Re: Artificial Inflation Of Prices In Nigeria by ephi123(f): 5:37pm On Jan 21, 2017 |
The religious angle just ruined this article, sorry. Otherwise would have been an interesting discussion. 2 Likes |
Re: Artificial Inflation Of Prices In Nigeria by ckmayoca: 5:38pm On Jan 21, 2017 |
The first problem is the unionism, unionism will not allow people render services at a cheaper price cos they will sanction you. Secondly these sellers increase price because things around them are increased like rents, kids sch fees, fuel, and clothing, so they increase theirs too to meet up. If there will be union then govt shld control it wit price control and not allowing them raid those who sells at a cheaper rate. 2 Likes |
Re: Artificial Inflation Of Prices In Nigeria by DaudaAbu(m): 5:40pm On Jan 21, 2017 |
angeltolly: Well , chicken dont use generator to lay egg but they need layers mash, which the poultry owner has to buy. Though i dont support any of this but its true we are our own enemy. The one that pain me pass is cup of garri. The cassava is farmed here, the processing is done here. No single imported or bought item added yet they will tell you recession is what cause the price hike. And its true that the northerners dont exploit people becos of the inflation. Check oit the price of tomato, onions, pepper, maize etc etc. Most things produced in the north are still cheap. Do you think they might not have just decide and make it expensive and claim its recession? But they choose not to 3 Likes |
Re: Artificial Inflation Of Prices In Nigeria by ckmayoca: 5:40pm On Jan 21, 2017 |
I wonder why barbers on the street charges 400, 500 when campus barbers charges 150 or eve 100 is some cases. Same with laundry services too. We flexed muscles cos importation was stopped. Allow importation for just 1 month and you will see price of food falling. 2 Likes |
Re: Artificial Inflation Of Prices In Nigeria by DaudaAbu(m): 5:44pm On Jan 21, 2017 |
ckmayoca: the price of clipper had risen niyen. because they use one clipper for one person. My guy learn to barb and forget those dirty barbing saloon that have not added any single value of cleanliness since 2 years ago |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 5:44pm On Jan 21, 2017 |
ephi123: Nothing ruined anything. We have to tell ourselves the truth. Religion has not helped anybody. We are all hypocrites!!!! How can we claim to be God-fearing, loving and good when we constantly seek for ways to defraud our fellow humans?? Greed, like one lady said above, is a human thing but it is common among some persons than others and in the Nigerian context, religion is the best way to prove the point. |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 5:48pm On Jan 21, 2017 |
DaudaAbu: @Ephi123: see the boldened. In the North, as is common in most Islam territories, prices are fixed and no one increases them to defraud others. The fixing of prices has more to do with "value" and "quality" than anything else. |
Re: Artificial Inflation Of Prices In Nigeria by ephi123(f): 5:53pm On Jan 21, 2017 |
fratermathy: If you want to start a religious discussion then do so, if you want to have a discussion on recent price increases then do. As far as I am concerned, there is a cumulative effect, e.g one of the examples you gave, yes chickens do not require generator to lay eggs but you've failed to realise that the transport cost of the seller to buy the chickens and their feed would have gone up, the chicken feed itself would likely have gone up combined with the general living costs of the seller. The seller obviously has to pass these costs on. As I've said, without the religious generalisation it would have been a great article. You don't have to agree, it's my opinion. 5 Likes |
Re: Artificial Inflation Of Prices In Nigeria by ephi123(f): 5:56pm On Jan 21, 2017 |
fratermathy: Same region where people are macheted and beheaded on a whim. Different shades of evil if you ask me. Anyway, don't let me derail your thread, I only just gave my opinion. 6 Likes 1 Share |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 5:57pm On Jan 21, 2017 |
ephi123: All I know is that adherents of traditional religions, Muslims, etc, hardly inflate prices. Even within the Christian community, Jehovah Witnesses don't do it but most do bizarre things in the name of business and they'll end up going to church on Sundays to do thanksgivings, after cheating people. As for liking the article, it wasn't a competition. My message has been passed. By the way, I'm not the one who illustrated with chicken and egg. I'm concerned more with local produce such as food items, oil, etc. |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:00pm On Jan 21, 2017 |
ephi123: True. Different shades of evil. ![]() ![]() ![]() Makes you wonder how religion has really changed people. |
Re: Artificial Inflation Of Prices In Nigeria by futurenix(m): 6:03pm On Jan 21, 2017 |
There is no doubt manufacturing companies who rely on forex are increasing their cost of production and I believe that's not what the OP is arguing about cause that will be so lame. Let me use this garri producer as an example I produce a bag of garri in a week and previously sell it at 12000 naira. Then I used to buy my peak milk for my breakfast at 100 naira, my sachet milo at 30 naira. I often transport my cassava to my home at 100 naira and to the market after production at 200 naira. Now the company producing peak milk has increased their price dueto the unfavorable exchange rate and now sell to wholesalers at 100 naira which was initially sold to them at 80 naira while it's passed to retailers at 90 naira. The wholesaler adds his usual 10 naira profit and said hey I bought kerosene to cook last week at 300 naira and other things have increased prices too. so I have to include extra 5 naira for this milk to cover for those extra cost on those my daily needs. He now sells to retailers at 115 naira. The retailers who normally buy at 90 naira and and sell 100 naira will also add their 10 naira profit and since they have also realized their daily expenses has increased will add 5 naira to cover it and now sell at 130 naira to the consumers and I the garri producer will now buy the milk that used to be 100 naira at 130 naira. Probably while bringing his garri he noticed the transport to the market has also increased from 200 naira to 300 naira. Probably the Danfo driver man has also realized his daily needs like soaps, milk, milo etc has also increased in price so he will have to top up his cost too. Same goes for the milo I used for my breakfast and my bread too. OP, if you were this garri producer will you still sell your bag of garri at 12000 naira? That's called a "ripple effect" in economics if at all your economics teacher taught that. It's ripple because it transfers. 6 Likes 2 Shares |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:07pm On Jan 21, 2017 |
futurenix: My focus is on local production. If you read the article you'd see I used oil as a case study. 1 Like |
Re: Artificial Inflation Of Prices In Nigeria by Nobody: 6:09pm On Jan 21, 2017 |
Apparently the writer and his cohorts failed Economics in school The price increases are not profit driven... but driven by factors of production. We have a free market economic system. Even for locally produced items, their real value is not in the price, but in the exchange value of their produce. 4 Likes |
Re: Artificial Inflation Of Prices In Nigeria by ElsonMorali: 6:10pm On Jan 21, 2017 |
The most unfortunate aspect is that the prices that have gone up in Nigeria will never come down again even after recession. 1 Like 1 Share |
Re: Artificial Inflation Of Prices In Nigeria by ephi123(f): 6:13pm On Jan 21, 2017 |
fratermathy: I know. In my opinion, Nigerians are only religious but far from being God-fearing, both "Christians" and "Muslims", but I would not generalize and say one group is better than the other because they display their evils in different forms. I would have loved to see other objective comments about the price increases without the cloud of religion hanging over the thread. Was a great read all the same. 2 Likes 2 Shares |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:16pm On Jan 21, 2017 |
Suprnov3r: Factors of production? Oga economist, oya gimme the factors of economics that warranted the increase in oil, akamu (pap), garri, ogbono, melon, etc? 1 Like |
Re: Artificial Inflation Of Prices In Nigeria by Sibrah: 6:16pm On Jan 21, 2017 |
The fact that a man produces wholly local goods doesn't make him an island separated from foreign goods. A farmer who uses local fertilizer to cultivate local seed still needs imported fuel to transport his harvest and do other basic things. |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:17pm On Jan 21, 2017 |
ephi123: A reread will show that I have edited the christian-muslim factor and regionalised it instead. In whatever form it is expressed, Northerners must be commended for not being as greedy as Southerners. I'm not adamant to constructive criticism. 2 Likes |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:22pm On Jan 21, 2017 |
Sibrah: Oga. Where they not transporting the goods successfully before the recession? Let's forget about the price now now, what about those that sell substandard goods in the name of recession? I've bought items that are of far less quality for more in this period. Is that also because of foreign goods? |
Re: Artificial Inflation Of Prices In Nigeria by futurenix(m): 6:23pm On Jan 21, 2017 |
fratermathy: Check the post again, just booked the space initially. There's always ripple effect in such situation. 1 Like |
Re: Artificial Inflation Of Prices In Nigeria by Nobody: 6:28pm On Jan 21, 2017 |
fratermathy: If your bank goves you N1,000,000 at an interest of 15% for catering your needs in 2014 and the interest rate is raised to 25% because of inflation in 2017, how does the farm entrepreneur factor that increase to maintain profitability? How does he cater for increased labour costs? Cost of repair and replacemnt of worn parts in machinery? Increased cost of power needed for milling machines and farm disel engines? Cost of logistics and seedlings? 2 Likes |
Re: Artificial Inflation Of Prices In Nigeria by ephi123(f): 6:29pm On Jan 21, 2017 |
fratermathy: Cool. That's more objective. |
Re: Artificial Inflation Of Prices In Nigeria by danmasani101: 6:32pm On Jan 21, 2017 |
Cost of cattle, sheep, bags grains (maize, beans, millet, guinea corn etc) has all gone up in the north. Am sure you know the religion of most people that engages such businesses. For God sake, why should you bring religious angle to the present inflation & recession been experienced ![]() What is wrong with folks like you. Must you show your religious extremist in everything ![]() fratermathy: |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:33pm On Jan 21, 2017 |
futurenix: Your argument is sound. However, I doubt if it will suffice for items like okro, melon, water, beans, etc, that are locally grown and produced. Like I said in the article, I don't have any prejudice for the genuine market factor increment but we have to understand that many retailers excessively add to their prices while some sell substandard products or even reduce the quantity of items for a higher price. How do we then reconcile the margin of difference? |
Re: Artificial Inflation Of Prices In Nigeria by Nobody: 6:36pm On Jan 21, 2017 |
fratermathy: Using regionalism instead of religion does not make your argument more valid. The muslim/northern farmer who refuses to increase price for cultural/religious reasons will not survive a free market economy and will always remain a subsistent farmer. We are a capitalist economy and PROFIT IS KING. |
Re: Artificial Inflation Of Prices In Nigeria by fratermathy(m): 6:37pm On Jan 21, 2017 |
Suprnov3r: What you just described, to the best of my knowledge, are factors that have been in place for a long time, before the economic recession. It is also not every farmer that works with the bank. Most farmers in the villages where a higher percent of goods come from do not use conventional banks.they produce and take their cash to feed their families. Then again, I'm not an expert in economics. I simply know that most of the so-called inflation are purely artificial. |
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