News
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.”
News
Former House of Representatives Member Arrested Over Alleged WAEC Certificate Forgery
Hon. Rita Odichi Orijifor, who represented the Ajeromi Ifelodun Federal Constituency between 2015 and 2019, has been arrested by the Nigerian Police over allegations of using a fake WAEC certificate during her tenure in the House of Representatives.
According to sources, Orijifor was apprehended earlier today at her residence in Wonderland Estate, Abuja, after police officers had waited for over five hours for her to come out. She reportedly locked herself in her bedroom and made calls to influential political figures in a bid to avoid arrest. However, none of the figures offered assistance in this high-profile scandal, and despite some attempts to intervene with the police, Orijifor eventually emerged from her hiding place and was taken into custody.
Before her arrest, Orijifor had reportedly been hiding in Akure to evade law enforcement, only returning to Abuja after believing the situation had cooled. However, unknown to her, the police were already on her trail.
Her legal troubles began when a judge in the Federal Capital Territory dismissed her application to stop the ongoing police investigation. The judge ruled that Orijifor failed to demonstrate that her rights had been violated by the authorities.
Orijifor is currently being detained at the Force Headquarters in Abuja as investigations continue. The case is expected to be a significant development in Nigerian politics, given her previous role as a federal lawmaker.
This is a developing story, and more details are expected to emerge as the investigation progresses.
News
I Looked At Myself In The Mirror And I Asked “Who Are You?” – Gov Adeleke
Governor of Osun State, Senator Ademola Adeleke on Sunday, November 24, 2024 held his Thanksgiving Service at the Cherubim and Seraphim Church, Oke-Gada, Ede, Osun State to celebrate his Second Year in Office as the Governor.
The officiating Pastor directed all guests and members of the church for a-minute-silence for three elders in the Adeleke dynasty who have passed away; Senator Isiaka Adetunji Adeleke, his mother, Mrs Nnena Esther Adeleke and her husband, Senator Ayoola Adeleke.
The officiating Pastor took his message from Psalm 23. He admonished the Governor to always put God first in everything he is doing and strike a balance between public and private interest.
The Priest said the Thanksgiving Service celebrant should be careful of sycophants and praise singers and he should let people see him as a man of God and be accessible.
In his testimony, Governor Adeleke said, he still cannot believe what God is doing through him in Osun State, how God is able to turn things around for good for him in the State.
He remembered when his mother was on sickbed asked him to always sing three praise songs through which God will always answer his prayers.
One of the songs include a Yoruba song, “Ogo yi Oluwa ye Ogo yi, mase JE ko baje mase JE ko Daru…” and two other Igbo praise songs.
The governor who was filled with excitement said he woke up one day and went to the mirror and asked himself “who are you?”. The answer, the Governor of Osun State. He was surprised at how God works in the affairs of men
The elder sister of Mr. Governor, Yeyeluwa, Modupe Adeleke-Sani admonished the awesomeness of God presence in Adeleke’s family.
She said it wasn’t time of Senator Ademola Adeleke to be the Governor in 2018 because God knows there was going to #ENDSARS and COVID-19 during the period, God made his governance possible at the appropriate time in 2022. “Adeleke’s family is God’s family, we will continue to serve and worship him for his goodness and mercies that endure forever.”
She donated the sum of N10,000,000 (Ten Million Naira Only) on behalf of Adeleke’s family.
News
Bishop TD Jakes suffers health emergency during Sunday sermon
Bishop T.D. Jakes, the renowned pastor, author, and founder of The Potter’s House megachurch, experienced a health emergency shortly after delivering a powerful sermon on Sunday.
The incident occurred following an extended sermon at the Dallas-based non-denominational church.
In a statement posted on Facebook on Sunday, church officials confirmed that Bishop Jakes received immediate medical attention and is currently in stable condition under the care of healthcare professionals.
The statement reads, “During today’s service, Bishop T.D. Jakes experienced a slight health incident and received immediate medical attention following his powerful hour-long message.
“Bishop Jakes is stable and under the care of medical professionals. The entire Potter’s House family is grateful for the outpouring of love, prayers, and support from the community. Thank you for your understanding and continued prayers.”
Founded in 1996, The Potter’s House is one of the largest multicultural megachurches in the United States, boasting over 30,000 members.
The church, which is well known for its global influence, has consistently been ranked among the most impactful religious institutions in the country.
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