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Why Price Of Food Won’t Drop Immediately Despite Naira Appreciation
As the Nigerian naira experiences an upturn against the dollar, economists have indicated that the positive effects on the country’s commodity prices might not be immediate.
Speaking to Punch, CEO of Economic Associates, Ayo Teriba, highlighted the time lag in the impact of currency fluctuations on market prices.
According to Teriba, while the strengthening naira is a positive sign for the economy, the translation of this development into reduced commodity prices will not be instantaneous.
Consumers may have to wait before seeing a noticeable decrease in the cost of goods and services, as market dynamics and pricing mechanisms gradually adjust to the new exchange rate reality.
He noted, “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.”
Echoing similar sentiments, President of Nigerian Economic Society, Adeola Adenikinju, highlighted the economic rationale behind the delay in price adjustments.
Adenikinju stated, “What people 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.”
According to Adenikinju, the central bank’s actions in the next few weeks will also reflect what the sellers will do.
He said, “They will be watching the markets to see if CBN will be able to sustain the stability of the naira.”
Nigeria has been battling soaring inflation, which accelerated to 31.70 per cent in February from 29.90 per cent in the previous month, driven primarily by food inflation, which rose to 37.92 per cent.
To tame the pacing inflation, the CBN raised the benchmark interest rate to 22.75 per cent in February from 18.75 per cent and further reviewed it upward to 24.75 per cent on Tuesday.
According to Professor of Economics, Babcock University, Onakoya Adegbei, the fact that prices go up and never come down is not peculiar to Nigeria.
He said, “Reduction in production usually comes with a lag because of rigidity in production.”
He emphasised that market expectations usually drive the delay.
“There is usually a lag and that is due to the expectation theorem. For example, if you expect the price of rice to increase, you will buy more and keep it in the house, So, it will increase your demand. But if you expect that prices will fall, what you already have you cannot dispose of.
“Reduction in production usually comes with a lag because of rigidity in production. If you already produce a certain product at a certain price and the price in the market is falling, you will then wait to see if the reduction will be sustainable. If you see that it is sustainable, then you can make a move to reduce the prices of your product. It is a lag effect,” Adegbei explained.
A foodstuff seller at EFAB market, Favour Uche told the platform, “The price of rice didn’t reduce even now that the dollar is down.”
Uche emphasised the challenges faced by traders, including the expenses incurred to maintain product quality amid infrastructural constraints.
“The price of rice didn’t decrease. Even now that the dollar is down, it still hasn’t reduced. For example, a carton of Titus fish cost N90,000 two weeks ago but today, the same carton of fish is sold at N95,000 as of March 29, 2024.
“Even with the fact that the dollar has reduced, but being in the system, I think I understand why. It is because they use one-third of their profit to buy diesel to cool these fish and keep them frozen. After all, there is no light. So, I understand their pain and why the prices are like that,” she added.
Another trader, Abdul Yusuf, who sells meat, asserted, “Price did not come down even with the dollar fall.
“Two weeks ago the price of one kilogramme of meat was selling at N4,800 but now, it is N5,000. So, the price did not come down even with the dollar falling.”
According to the statement, the arrests took place on Monday, March 31, 2025, following credible intelligence.
The Nigeria Immigration Service (NIS) has said that its officers arrested 51 illegal migrants from Mali in New Nyanya, Karu Local Government Area of Nasarawa State.
The NIS made this known in a statement issued on Wednesday by its Public Relations Officer, ACI A.S. Akinlabi.
According to the statement, the arrests took place on Monday, March 31, 2025, following credible intelligence.
A breakdown of the arrested migrants revealed that 11 were female, while 40 were male, with ages ranging between 16 and 19 years.
Akinlabi stated that preliminary investigations revealed that the arrested illegal migrants may have been victims of Trafficking in Persons (TIP) and Smuggling of Migrants (SOM), as they were found without valid travel documents or residence permits.
“Preliminary investigations conducted by the Service suggest that the migrants may have been victims of Trafficking in Persons (TIP) and Smuggling of Migrants (SOM), as they were found without valid travel documents or residence permits,” Akinlabi stated.
The statement further noted that the detained individuals have been taken into the custody of the Service for further profiling and investigation.
“The arrested individuals have been taken into the custody of the Service for further profiling and investigation to determine the circumstances of their migration and any potential involvement of trafficking or smuggling networks or syndicates,” Akinlabi added.
Akinlabi further stated that the NIS would determine the circumstances surrounding their migration and uncover any potential involvement of trafficking or smuggling syndicates.
The statement added, “The Nigeria Immigration Service remains committed to ensuring that Nigeria’s borders are protected against illegal migration while upholding the rights of migrants who comply with the country’s immigration laws.
“The Service continues to work closely with relevant authorities and stakeholders to combat smuggling of migrants and counter trafficking in persons effectively.
“The NIS reassures the general public of its unwavering commitment to National Security and Migration Management while encouraging citizens to report suspicious migration activities to the nearest NIS Commands and Formations.”
The remains of an engineer, Chigozie Udalu, have been exhumed from a shallow grave in Akwukwu-Igbo, the headquarters of Oshimili North Local Government Area in Delta State.
Recall that the engineer, who was contracted to construct offices in Akwukwu-Igbo, was murdered and buried in a shallow grave.
Though the incident occurred in December 2024, details only emerged recently after two suspects were arrested in connection with the crime.
Assailants Murder Construction Engineer In Delta State Community, Bury In Shallow Grave
A community source revealed that the suspects, identified as Tiv youths from Benue State, allegedly killed the engineer and concealed his body on a farm.
“Two Tiv boys from Benue State have been arrested in connection with the crime. They buried the engineer’s remains in a shallow grave on a farm,” the source stated.
The Delta State Police Command confirmed the incident, with spokesman Edafe Bright acknowledging that an investigation was ongoing.
“We are aware of the incident, and our men are working to ensure others involved are apprehended,” Bright revealed.
On Wednesday, the remains of the victim were exhumed by the police and the Delta State government.
A police source revealed that the arrested suspects alleged the engineer owed them money and often verbally abused them.
“They had also intended to steal cement from the site but perceived the engineer as an obstacle. On December 10, 2024, they planned to strike him with a 2×2 plank but assumed he was physically strong and might overpower them.
“On December 11, the Tiv boys put a rope around his neck from behind, causing strangulation. Upon his death, they buried him in a shallow grave on the farm,” the source explained.
“Following the murder, the suspects reportedly completed their contract at the site and stole the victim’s phone, making several attempts to transfer money via a mobile app.
“Additionally, the landlord of the construction site was accused of being involved in money rituals. In an attempt to clear his name, he was taken to shrines to swear an oath before the victim’s family.
“The landlord recounted his ordeal, stating that he nearly gave up on the case due to the challenges he faced with the State Criminal Investigation Department (SCID) in Asaba.
“However, a police officer suggested he visit Ekpan Divisional Police Officer (DPO), CSP Aliyu Shaba. The officer assured him that within 30 days, the truth would be uncovered.
“Upon arrival at Ekpan, the landlord briefed the DPO, who assembled his team and employed sophisticated investigative techniques, leading to the arrest of two suspects.
“One of the suspects later confessed to knowing the location where the engineer was buried,” the source said.
A young man was also arrested and transferred to the SCID for openly threatening the victim in the presence of the landlord, further highlighting the brutality of the crime.
Of the four individuals arrested, two are considered principal suspects. Meanwhile, a manhunt is ongoing for the remaining suspects who are still at large.
A South African court found a Nigerian televangelist not guilty on 32 charges Wednesday, eight years after he was jailed on accusations of raping and sexually assaulting several young women from his church.
Eastern Cape High Court judge Irma Schoeman said the prosecution had mishandled its case against Tim Omotoso, 66, senior pastor at the Jesus Dominion International (JDI) church based in South Africa.
Omotoso, arrested in 2017, fell to his knees and appeared to pray after the judge found him not guilty of all charges, which included sexual exploitation and human trafficking.
Schoeman said that while the pastor’s explanations appeared improbable, state prosecutors had not proved beyond reasonable doubt their case against him and two assistants who also faced charges.
“The accused are found not guilty and are discharged on all the charges,” she ruled.
The women who testified against Omotoso said they were handpicked by the pastor, who would pray for forgiveness after each encounter with them.
Some had been part of a gospel girl band called Grace Galaxy set up by the pastor and others were still at school, the judge said.
With South Africa battling high rates of rape and abuse of women and children, dozens of women picketed outside the court in the eastern coastal city of Gqeberha as the verdict was being read out.
Thousands of people rallied in several cities on Tuesday to demand that authorities take action after a seven-year-old girl was allegedly raped at her school last year. There have been no arrests.
According to police figures, 42,500 rapes were reported in South Africa in the financial year 2023-24.
AFP
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