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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.”
By Kayode Sanni-Arewa
Kidnappers have killed a Nigerian Army non-commissioned officer, Abdulfatai Odutola, over a delay in ransom payment.
Recall that Odutola, a Senior Non-Commissioned Officer (SNCO), was abducted on February 15, 2025, along the Abuja-Jos highway.
He was reportedly travelling to Yola, the Adamawa State capital, at the time of the incident.
His kidnappers had demanded a ransom of N20 million for his release.
A military internal memo earlier obtained by SaharaReporters had read, “Pls information reaching me now from this sldr whisky that MWO Abdulfatai Odutola (CC 23 BDE Yola) was kidnapped yesterday along Abuja-Jos Road, while returning to Yola. He left Ilorin on Friday 14th of Feb 2025 and slept at Abuja. He continued his movement from Abuja yesterday b4 the incident happened to him.
“Currently they are demanding N20,000,0000 for his release. Pse appropriate authority should help the sldr.”
However, another internal memo revealed that the body of the senior personnel has been recovered.
“Information reaching us now from Yola is that the above MWO Abdulfatai Odutola’s body was discovered by police from Jos forest killed by his kidnappers after passing deadline for payment of 20 million naira ransom payment demanded by his kidnappers. Also his car was discovered. Kindly take action.”
SaharaReporters recently reported that Boko Haram/Islamic State West Africa Province (ISWAP) terrorists killed three army personnel during an attack on a military base in Borno State.
The terrorists reportedly attacked the military facility in Isige town, Gwoza Local Government Area, for several hours.
According to a source, the terrorists destroyed several buildings and stole two gun trucks during the assault.
“There was an attack recently in Borno, one Staff Sergeant with two private soldiers were killed. However, the army authorities are silent over the attack which happened at a base in Isige Town, Gwoza Local Government Area of Borno State.
“They burnt one military vehicle while they went away with two gun trucks, later reinforcement came from nearby unit but then the Boko Haram fighters have left,” the source said. (SaharaReporters: Text, Excluding Headline)
By Kayode Sanni-Arewa
Canada’s immigration authorities have clarified that seeking asylum does not provide an automatic exemption from immigration laws.
The Immigration, Refugee and Citizenship Canada (IRCC) emphasised that individuals seeking asylum must demonstrate that returning to their home country would subject them to serious harm in order to avoid deportation.
The asylum system is designed to offer protection to those fleeing threats such as torture, persecution, and inhumane treatment.
IRCC has reiterated that the asylum process is not a shortcut to entering the country.
Applicants must provide verifiable evidence of persecution and undergo multiple checks, including medical examinations, biometric data collection, and security screenings.
The statement reads, “It is a rigorous process to determine whether you have a legitimate need for refugee protection according to Canadian and international laws. Our rules-based system will determine the validity of your claim. It’s important to understand that not all claims will be accepted. If you make an asylum claim in Canada, you will need to:
Have health, criminal, security and other background checks
Get a medical exam
Provide personal and biometric (photo and fingerprints) information
Provide concrete evidence of persecution and the risks of being in your home country
Declare on your application if you are working with a representative, even if you’re not paying them
“Providing false information on your refugee claim application is considered lying, and your application may be refused.
“You’ll be removed from Canada if you don’t have a legitimate claim or are not eligible to make a claim in Canada. It can take a long time to get a final decision on your asylum claim. There’s no guarantee that you will be allowed to stay in Canada.”
By Kayode Sanni-Arewa
Governor Ademola Adeleke has ordered restriction of vehicular movement from 5am to 5pm on Saturday 22nd February 2022 across Osun state.
The directive of the State Governor was sequel to the statewide local government elections that are scheduled to be held tomorrow across the state.
Governor Adeleke who reiterated his commitment to peace and security said the movement restriction is necessary to prevent importation of hoodlums into the state amidst local elections.
He therefore directed security agencies to enforce the restriction and only allow voters and accredited media and civil society organizations for the continued peace and security of Osun state.
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