Beautifulday:


You asked a question

How did we get here?

You didn't give any answer. You just asumed having more money brings inflation. That is elementary economics. But it does not work that way in the real sense.

You could as well elaborate further on your assertion. By the way, the OP's point isn't basic or elementary Economics as you stated because inflation is one of the core macro-economics components. Considering the current Nigerian inflationary situation, increasing minimum wage without a corresponding increase in outputs will create more inflationary pressure. Nigerians should be ready for more increase in prices of goods and services, increased rents, taxes, bus fares, bills...Na people in the private sector go suffer pass and people on fixed incomes.
Back to the OP's comment, it will do a lot of good to the country if the government can be intentional with rigorous but friendly policies. Provide long term loans for start-ups, reduce corporate tax, excise duties, revive the refineries to produce at optimum capacity, revamp the power sector and above all, revamp the education industry by making it cheap and assessible to all, increase investments in technical institutions to train more technically skilled personnel, reduce brain drain to the bearest minimum, reduce cost of governance, impose capital punishment on those who misappropriate public funds... All these should be our focus right now.

Peppysco:


You could as well elaborate further on your assertion. By the way, the OP's point isn't basic or elementary Economics as you stated because inflation is one of the core macro-economics components. Considering the current Nigerian inflationary situation, increasing minimum wage without a corresponding increase in outputs will create more inflationary pressure. Nigerians should be ready for more increase in prices of goods and services, increased rents, taxes, bus fares, bills...Na people in the private sector go suffer pass and people on fixed incomes.
Back to the OP's comment, it will do a lot of good to the country if the government can be intentional with rigorous but friendly policies. Provide long term loans for start-ups, reduce corporate tax, excise duties, revive the refineries to produce at optimum capacity, revamp the power sector and above all, revamp the education industry by making it cheap and assessible to all, increase investments in technical institutions to train more technically skilled personnel, reduce brain drain to the bearest minimum, reduce cost of governance, impose capital punishment on those who misappropriate public funds... All these should be our focus right now.

What you proposed are great but most of them aren't possible in practice. Creating friendly policies is possible. Provision of long term loan is great but can't work in a country like Nigeria for now because we don't have the culture of repaying loans due to our poor salary structure and erratic employment system. Taxes is Tinubu major source of income from the beginning and so on.

Increasing wages will not increase price of goods. What causes increase in prices of goods is demand and supply.

There is short supply of most goods in Nigeria. But because we see them in the market we think they are surplus. How you will know we have short supply of agricultural goods is most of these goods are harvested before maturity.

The buyers force the farmers to harvest before time. When the farmers senses the desperation of the buyer. He raises his price. The buyers knows that there is short supply and can sell with higher price. He will agree to the farmers price.

The final consumer has little options because the goods are in short supply. He buys at any price.

If government open the borders and allow import price will automatically crash.

Houseontherock1:

On the contrary, he gave an answer! The main culprit is the subsidy removal. The whole problem started with subsidy removal and floating of naira.... its ripple effects are being felt in every aspect of the economy. Guy should have beamed his searchlight on the large scale subsidy scam and fix it instead. Cutting off the head is never the solution to headache

Removal of subsidy was a wrong move but it has happened. However, the rise in price of goods is higher compared to what it should have been if things were normal and subsidy removed.

What we are experiencing is actually caused by artificial scarcity. These are not the real price of things even without subsidy.

manmade:
you're right on this , they closed bother against rice importation through the land border and start pumping money to the imaginary rice farmers through the CBN, the politicians in turn,after eating the money and have nothing to show for it ,set up wooden pyramids covered by some scanty bags of rice to deceived the public , then the demands raised above the supplies and boom 💥 inflation creeped in.

If government allows massive importation of rice. The price will crash, so will other goods. It is scarcity that is causing price increase.

The seller is afraid of selling everything without nothing remaining so he continuously increases his price most time to scare the buyer. But there is a hungry market for the buy, so he buys at any price. The seller is shocked but doesn't know his neighbor is experiencing the same thing.

ADAMUdaCOWBOY:

This one is blaming yahoo boys for inflation. Na wa o!

You don't know the amount of money those guys brought into the economy in 2020. The money CBN is talking about with binance is fraud money. It came in since 2020 during Benefits.

If you know how much America gave out in benefits and how much of that money found it's way into African economy especially Nigeria with their tiny budget and GDHI you will understand.

Beautifulday:


If government allows massive importation of rice. The price will crash, so will other goods. It is scarcity that is causing price increase.

The seller is afraid of selling everything without nothing remaining so he continuously increases his price most time to scare the buyer. But there is a hungry market for the buy, so he buys at any price. The seller is shocked but doesn't know his neighbor is experiencing the same thing.

Wonderful opinion, but dont also forget to tackle insecurity so that local farmers can go back to their farms to encourage competition with the imported rice, dont also forget to minimize importation at a point to avoid importing more inflation into our already struggling state

Beautifulday:


What you proposed are great but most of them aren't possible in practice. Creating friendly policies is possible. Provision of long term loan is great but can't work in a country like Nigeria for now because we don't have the culture of repaying loans due to our poor salary structure and erratic employment system. Taxes is Tinubu major source of income from the beginning and so on.

Increasing wages will not increase price of goods. What causes increase in prices of goods is demand and supply.

There is short supply of most goods in Nigeria. But because we see them in the market we think they are surplus. How you will know we have short supply of agricultural goods is most of these goods are harvested before maturity.

The buyers force the farmers to harvest before time. When the farmers senses the desperation of the buyer. He raises his price. The buyers knows that there is short supply and can sell with higher price. He will agree to the farmers price.

The final consumer has little options because the goods are in short supply. He buys at any price.

If government open the borders and allow import price will automatically crash.

Increasing wages will not increase price of goods. What causes increase in prices of goods is demand and supply.

This comment of yours is entirely untrue. Have you heard about DEMAND-PULL INFLATION?
An increase in disposable income of consumers increases their purchasing power and their demand for goods and services.
The efforts to rebuild the economy should be a collective one. Both the government and citizens are involved. Our government needs to be more intentional, purpose driven while the citizens also play their part. My views about the economic and political landscape of Nigeria changed when I relocated. It is absolutely unfair that we as Nigerians have to live and go through the things going on in that country, it is unfair. I can boldly say that no Nigerian politician, dead or alive, has even done right by the country. They're all the same. I mean, they take us for fools in that country. A governor go construct 10km road and he go dey invite president to come cut ribbons, na madness na, something wey council dey do for here. They pitch us against ourselves so much so that we begin to hate, fight and despise ourselves, just because they want us to lose focus and not hold them accountable for their inefficiencies. It's such a shame, man.

Beautifulday:


You asked a question

How did we get here?

You didn't give any answer. You just asumed having more money brings inflation. That is elementary economics. But it does not work that way in the real sense.

You made a statement without buttressing it. In the real sense, people earning more money will simply mean the price of everything will increase. The artisans, market men and women… will increase the price of their service and commodities. So, the government workers will not enjoy the increase in their salaries. It will be a vicious circle. Check history, this has happened in Nigeria before and in other countries. Again, we do not all work for the government and so will not all get our salaries increased. But, to afford anything from the market, we will need our own salary increase or poverty will definitely increase.

Only in a near-failed country will you see minimum wage being increased by 200% and above in one fell swoop.

N100,000 minimum wage will be an increase of over 200% over the current minimum wage of N30,000. Wow!

Many of the social media youths screaming for irrational increase don't know their left from their right when it comes to inflation.

We don't even have enough garri in this country and we want to more than triple minimum wage. What does the minimum wage mob think will happen to the price of garri That's just one example.

With a N100,000 minimum wage, we can waive good bye to inflation coming down for a long time.

Have these people not heard of Zimbabwe?

jmoore:
Tinubu dey collect 900,000 naira everyday as food allowance. E no cause inflation?

If money is the issue, then let the workers be paid with bags of rice. Minimum wage should be 1 bag of rice.

Tah,they should be paid 3 bags of rice as minimum wages.

VinnyBaba:


Inflation would NOT occur.

You Pple should stop all these Wrong Analysis that tends to discourage NLC.

It's only Civil servants that will Actually enjoy the Implementation of the Minimum Wages.

So why will the Market Woman raise prices of Her goods when she knows that a Barber, POS operator, Farmer, private school teacher, Pastor, etc did not benefit from it?

It is not just civil servant who will enjoy the implementation, some private sector enterprise will also put it into implementation as well.Now imagine private businesses jacking up wages of their workers, wont they increase the prices of whatever they produce?
What about traders who are not on minimum, will you expect the prices of whatever they sell to remain constant?
Its high time people came to realization that economic laws and principles doesnt work here,there Is no one cross checking anyone's excesses.We do whatever that pleases us.

Usmanovic95:


It is not just civil servant who will enjoy the implementation, some private sector enterprise will also put it into implementation as well.Now imagine private businesses jacking up wages of their workers, wont they increase the prices of whatever they produce?
What about traders who are not on minimum, will you expect the prices of whatever they sell to remain constant?
Its high time people came to realization that economic laws and principles doesnt work here,there Is no one cross checking anyone's excesses.We do whatever that pleases us.

Ogbeni, leave ur plenty talks.

Once the new Minimum wage of maybe 70k-100K is implemented,
There will be no Inflation.😏

A large percentage of Nigerians are NOT Recipients of the Wage,
So market Peeps won't be foolish enough to increase Price just because of Govt Teachers, Doctors,broadcasters, parastatals workers, etc.

ADAMUdaCOWBOY:

This one is blaming Yahoo boys for inflation. Na wa o!

Sometimes you just need to read and understand before you comment If only you knew how Yahoo boys spoiled the price of things like polo, shirts, shoes, drinks for clubs and bars and even relationship and nonsense hookups they were paying 4 to 5 times higher than the real prices making it difficult for a common man to buy..

Lordsnow007:
Sometimes you just need to read and understand before you comment If only you knew how Yahoo boys spoiled the price of things like polo, shirts, shoes, drinks for clubs and bars and even relationship and nonsense hookups they were paying 4 to 5 times higher than the real prices making it difficult for a common man to buy..

Are you serious? Excuse me sir, are you a clown? They are talking of the economy, food prices in the market, price of petroleum products, cost of transportation etc and here you are talking about polo shirts and shoes, drinks and clubs and hook up? Are you serious? Wetin Dem dey teach una for that una school? Kai! God forbid wallahi!

Be realistic, so your yahoo Boys have money more than our politicians?

Lordsnow007:
Sometimes you just need to read and understand before you comment If only you knew how Yahoo boys spoiled the price of things like polo, shirts, shoes, drinks for clubs and bars and even relationship and nonsense hookups they were paying 4 to 5 times higher than the real prices making it difficult for a common man to buy..

Tinubu has no business in
Azo rock. He has no clue on how to solve any of the problems he met on ground and that's why he made things worse.