How prices of goods, services continue to go up despite naira appreciation
Despite huge appreciation of naira against dollar in the last few days, prices of goods and services have continued to climb at an alarming rate.
Torizone gathered that early last month, the price of dollar against naira has risen to alarming N1900/1$, thereby making price of goods and services rise at all time high with its attendant economic consequences.
However, with the continuous appreciation of naira against dollar, analysts said it was expected that prices of both commodities and services will begin to come down gradually.
In any case, the reverse is said to be the case as the price continues to go rooftop.
At Motor spare parts shops in Nsukka, Torizone reporter who visited the area discovered that dealers in these items were not ready to reduce the price of their goods.
One of them who gave his name as Ikedi James told our reporter the naira appreciation is audio announcement.
According to Mr. James, ” all these noise about the fall of dollar is only seen on the pages of newspapers and on the radio and television. We are seeing any changes in the price of goods. If you go to the importers of these goods we sale here, they will tell you that are not yet to feel the impact of the appreciation of naira.”
Narrating further, he stressed that, ” this is why if anyone comes to my shop complaining about dollar fall and high cost of our goods, I will tell them that we are equally buying at the same high price from the importers and dealers.”
At building materials, one of the dealers, Remigius Onyeka who spoke to our reporter explained that the situation is indeed very much unpalatable.
“Our headache now is that many people are already aware that dollar price against naira is crashing down. That’s why when they come to our shop, they always asked us why are prices of goods still going up when dollar is falling.
“The problem is that we the dealers are still buying at a very high price. The importers keep on telling us that they bought these when dollar was somewhere at N1800/1$ and so will not sell below purchase because dollar fell overnight. They said they need to dispose the old stock first and buy at a cheaper price before selling at a cheaper price.”
Mr. Onyeka told our reporter that a bag of Dangote cement still sold at N8000 while a bundle of Cameroun zinc is now N56,000 against N53,000 it was sold before the crash of dollar against naira.
Explaining further, he said that ” a bag of 4 inches nail is still going up. As at today, (March 25,2024) it is sold at N34,000. I am of the opinion that apart from dollar appreciation, fuel subsidy removal was also part of the reasons why prices of goods were going up.”
At electronic shops in Ogbete main market Enugu metropolis, the story was still the same. One of the electronic dealers, Friday Oruku told our reporter that they have not seen the effect of naira appreciation in price of foreign goods.
According to Mr. Oruku, ” as I speak with you now, many of us are confused whether to sell our goods of leave them in the shops. This is because if you buy an item for say N10,000 and then sell at N12,000 for instance. If you go back to buy the same item, you will discover that the price has jumped to N15,000. So, prices have continued to climb up despite the fact that we heard that naira has appreciated tremendously.”
Stressing further, he said that 200litres Skyrun freezer that was sold at N250,000 last week is now N270,000.
“The importers kept on telling us that they will finish disposing those items they bought at high price because thinking of reducing the price to reflect the current naira appreciation. They also told us that high taxation, levies by the government also contribute to high cost of these goods.The worst is that they told us that this can only be possible if naira continues to appreciate. If the reverse becomes the same, they will continue to sell at the price they bought the items.”
However, at food stuff markets, the story is also the same.
When Torizone visited Adani rice mill on Thursday before Easter, price of rice was at rooftop.
A bushel of rice which contains 120 milk cups was sold at between N25,000 to N26,000. Before naira appreciation, it was sold at N22,000 and N23,000.
One of the sellers who spoke to Torizone attributed the situation to the high cost of chemicals for rice cultivation.
According to the seller, “for now, the price of chemicals we use for cultivation are very high. The ones we bought at N4000 last year are now N5500. How are we going to get the money to buy chemicals this year? That’s why we are selling to cover up a bit for this year’s farming.”
Torizone gathered that as at April 2, 2024, naira has continued to appreciate against dollar, selling at N1250/1$.
