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.”
By Gloria Ikibah
The Embassy of Belgium in Nigeria has reaffirmed its commitment to deepening diplomatic relations with the country.
Belgian Ambassador Pieter Leenknegt stated this during a courtesy visit by the Diplomatic Correspondents’ Association of Nigeria (DICAN), led by its Chairman, Frederick Idehai, at the embassy in Abuja.Discussions centered on fostering collaboration, particularly in capacity-building initiatives for DICAN members and other areas of mutual benefit.
Addressing the delegation, Ambassador Leenknegt also commented on the ongoing discord between Senate President Godswill Akpabio and Kogi Senator Natasha Akpoti-Uduaghan, describing it as an unnecessary distraction, urging key stakeholders to promote dialogue and reconciliation in the interest of national stability.
Speaking further, Ambassador Leenknegt has some reservation over what he described as “sloppy journalism” among Nigerian Journalists which needs to be corrected.
This unpalatable adjective, according to the envoy, stems from an experience he had when he visited the Minister of the Federal Capital Territory, Nyesom Wike.
“It was a fruitful meeting I had with the FCT Minister with key areas of interest well highlighted.
“However, the next day I was surprised to find in over 13 print and online media that the meeting the previous day, was between the outgone Ambassador of the Embassy and with his photograph attached.
“This was a meeting I personally attended so how could they attribute it to my predecessor and attached his photo?
“That’s terrible and what it meant was that one person goofed and others copied from the original source without due verification,” he lamented.
Earlier in his remarks, DICAN Chairman, Comrade Idehai Frederick emphasised that the partnership will enhance cultural exchange between Nigeria and Belgium.
He said the role of media in promoting democracy, good governance and bilateral relations cannot be overemphasized.
“We will provide your country with the needed support in the area of quality and credible reportage for the sake of humanity,” Idehai said.
The visit also touched on the upcoming DICAN Diplomatic/Security International Conference, scheduled for June 19, 2025, in Abuja to brainstorm on how to make the world a better and safer place.
“We want to enhance bilateral relations through our engagement and agenda setting.
“When governments across the nations of the world know that journalists are interested in monitoring their programmes, they wake up and address their challenges,” Idehai stated.
By Gloria Ikibah
The Minority Caucus of the House of Representatives has strongly condemned the recent killings of about 16 Nigerians, mainly northerners, by an armed group in Edo State.
In a statement signed by Minority Leader, Rep. Kingsley Chinda, Minority Whip, Rep. Ali Isa JC, Deputy Minority Leader Rep. Aliyu Madaki, and other leaders of the caucus on Saturday, the caucus described the attack as “barbaric” and “reprehensible,” warning that if such violence is not curbed, it could threaten national peace and unity.
“We find such brutal killings of innocent Nigerians in any part of the country by lawless mobs very reprehensible, and if allowed to fester without being put in check by responsible organs of the federal government, such actions could threaten the peace and unity of the country,” the statement read.
The lawmakers urged Nigerians to avoid taking the law into their own hands and instead seek the intervention of law enforcement agencies when faced with security concerns.
The Minority Caucus called for swift action, and urged President Bola Ahmed Tinubu to direct security agencies to investigate the incident and ensure those responsible are brought to justice.
“We implore all Nigerians to never resort to such jungle attacks on their fellow citizens but to always implore the services of lawful authorities whenever they notice any issue of concern.
“In the face of this grave incident, which is already setting emotions on edge in parts of the country, we hereby call on the President and Commander in Chief of the Armed Forces of the Federal Republic of Nigeria, His Excellency Senator Bola Ahmed Tinubu, GCFR, to direct the security agencies to investigate this matter and bring all those involved in the killings to book in order to prevent its recurrence. And also adequate compensation should be paid to the affected families,” they demanded.
The caucus also appealed to Nigerians to remain calm and allow the government to handle the matter.
“We also call on all Nigerians to remain calm, peaceful, and law-abiding and allow the federal and state governments to get to the root of this matter in the interest of justice,” the caucus stated.
The lawmakers extended their condolences to the families of the victims, and assured Nigerians of their commitment to ensuring justice is served.
“We express our sincere sympathies and condolences to the families of the victims even as we assure them and all Nigerians that we, the Minority Caucus of the House of Representatives, will remain eternally vigilant until justice is done on this matter,” the statement continued.
By Kayode Sanni-Arewa
Suspected gunmen abducted a landlord and his daughter in the Ijede area of Ikorodu in Lagos.
In a statement on Sunday, Benjamin Hundeyin, the Lagos police spokesperson, said the kidnappers abducted the victims on Wednesday.
Hundeyin added that on Saturday, the command rescued the kidnapped victims unhurt and handed them over to their family members.
According to the police spokesperson, the command has launched a manhunt for the perpetrators.
“The police received information that some kidnappers invaded Ijede community and kidnapped two persons,” the statement reads.
“Upon receipt of the report, police operatives were mobilised to the scene where it was observed that the kidnappers forcefully gained entrance into the house of a 40-year-old man, killed the security dog and kidnapped him.
“The kidnappers equally forced their way into the nearby house and kidnapped the landlord’s 25-year-old daughter.
“With the collaborative efforts of both the police joint task force and other stakeholders, the kidnapped victims were rescued unhurt and handed over to their family members.
“The area is relatively calm and being closely monitored, and efforts are ongoing to apprehend the wanted suspects.”
-
News10 hours agoWike’s Aide reacts as photo appears online, points accusation finger at paid failed actress
-
News16 hours agoUpdated: WATCH moment Gov Diri’s Tech Adviser Kerry admits blowing up pipelines (Video)
-
News6 hours agoFormer HoR member, TeeJay Yusuf calls on IGP, Kogi govt, other agencies to curb rising insecurity in Okun-Yoruba
-
News7 hours agoEdo Killings: Kano Govt Sends Fact-Finding Delegation, Demands Justice
-
News7 hours agoJust in: Popular Osun Monarch Joins Ancestors
-
News4 hours agoMali, Niger, Burkina Faso Impose 0.5% Levy On Goods From ECOWAS Nations
-
News12 hours agoN24bn monthly salaries drive Oyo’s economic stability – Makinde assures
-
Entertainment16 hours agoTears of Joy as Biola Adebayo surprises veteran actress Dupe Jaiyesimi with a brand-new car