I don't know where exactly I have replied to post made about price of local products and I will still give same answer here; when you buy a product worth 2,000 dollars when Naira to dollars was 1900 this is automatic 3.8m to Naira and the sudden dollar decrease showed up within this period, would you sell your products at the rate of 1,120N knowing that you should sell 1900, are you seeing that you lost almost 45 percent of what you imported products?.
So, this can be a reason why local products are not dropping from the price it's to reflect the current dollar rate as we may have think about it.
I do not understand the reason you said to be the reason for the local products not decreasing in price when you explained that as dollar decreases in price to naira, that the price of imported products have decreased in price by 50%. Or don't you know that the cost of those imported products have significantly decreased?
No sir..
I understand you don't get my point.. Though you are right in what you are saying but, the area I am trying to draw your interest is; When you yourself imported lots of good during when 1 dollars was around 1700, and you stocked your warehouse with some goods worth 10 millions or thereabouts, along the line 1 dollar decreased 1,120 Naira would still risk to sell those goods you bought at 10 million very cheap because dollar has decreased?
At this point I would say "NO" even me can't bear the cost losing my goods bought for 10m at when 1 dollar was 1700, to sell at 1,120. It is a total lost and no foreign seller or importer could take that risk if they haven't finished their goods they bought very high at a high price. Maybe after they finished emptying their warehouse with old goods then, when they go for new market they can reduce their prices.
I will give another instances for you to get the clear picture of what I am saying currently; When a bag of cement was sold for 13,000 Naira, and a retail trader filled his local shop with 200 bags of cements at the price 11,500, hoping to sell at either 13,500 or same 12,500. Then federal announces a slash in cement price that is now 8,000 do you think the retailer who filled his shop with 200 bags of cement at 11,500 will take that risk to immediately reduces his cement price to 8,000 because federal government announces that a bag of cement is now sold for 8,000?
Please answer me here..
Your answer will determines why local products or goods are not decreasing or reducing in price despite the announcement of decreased in dollar. Again when you see those that refuses to reduce their local products is as a results of no union, when shop 'A sells a particular Item for 1k', there is no way 'shop B will go sell less than that price' rather s/he would like to increase in price, with this, dollar decreased won't reflects in our local markets or shops. So, what do we need now? We need a strong market Union or labor Union to keep monitoring each an every wholesalers and retailers to make sure it's reflecting on their products.