Why is the cost of things still on the high side？

[Jay-Jay247]

This is indeed a funny country indeed, I thought business man and women where following the trend DOLLAR DEY ON THE HIGH SIDE, is the dollar still up?
Few weeks ago, a single dollar was sold for N1900 and business people used that as the perfect excuse to increase the prices of commodities, and as at today, exchange rate from dollar to naira is $1 is equal to N1,395.46 ($1usd = N1,395.46). Nigerians just want to make more money out of every crises and this is not helping out economy despite the fact that dollar has gone down, many business men and women still don't want to reduce the price of things, even the new stuffs they bought are still sold at the old rate which is really really bad. I think the government should really do something about this before things gets out of hand.

[Cantsay]

The fact that dollar has dropped to 1,300 doesnnot necessarily means that the prices of things will follow immediately.

There are merchants that bought their goods while the price of dollar was still at 1700 - 1900 (referring to imported goods), so you won’t expect them to start selling at a lower price just because news of dollar rate is now circulating - just wait a bit before you start complaining.

[SmartGold01]

If I could recall correctly I have come across same post the other forum although seems so similar but, I have to contribute here as well. If the price of commodities are high this show that the dollar decrease doesn't have effects on the price of stocks in the market rather businessmen and women are trying to make out profits from their new purchased products using the old price of commodities to sell with the current price rate. Therefore it could takes some weeks maybe months for stability otherwise they won't reduced their price of goods in the market.

[Ambatman]

There are merchants that bought their goods while the price of dollar was still at 1700 - 1900 (referring to imported goods), so you won’t expect them to start selling at a lower price just because news of dollar rate is now circulating - just wait a bit before you start complaining.

But was fun for them to increase the price of their old stock when dollar increased. Well that's business.  The thing is nothing that goes up in Nigeria ever really come down, even if it does it would still go up. Inflation has been plaguing us for years and even if the government tries to minimize it, the common sellers wouldn't. Dollar is currently around #1250, things has fallen a little but not as much as it rose and if peradventure dollar increases to #1500again, Boom another price hike.

A single pure water is #40 in my side,  mini now chin chin #250 even bread is now #300 for the smallest size all this happened since Dollar touched #1900 and they still selling at same price.  You can't tell me is old stock na.

The thing is, they have seen as an association that at that given price their demand wasn't really affected, so why would they let the price go to the previous price when they can profit more at current price.

In a nutshell,  Inflation is affecting the world.naira might have gained against dollar doesn't mean it's purchasing power has increased. Fiat as we all know is depreciating in nature. May God help us all. Soon #50 would be a myth.

[Mr. Allcrypto]

The fact that dollar has dropped to 1,300 doesnnot necessarily means that the prices of things will follow immediately.

There are merchants that bought their goods while the price of dollar was still at 1700 - 1900 (referring to imported goods), so you won’t expect them to start selling at a lower price just because news of dollar rate is now circulating - just wait a bit before you start complaining.

Exactly what I was explaining to a friend about the price of things currently in the country, but he asked me a question and I felt like asking it here too.
Are you sure that the cost of things will go back to normal again?
If yes what is your reason.

[DragonF]

This is indeed a funny country indeed, I thought business man and women where following the trend DOLLAR DEY ON THE HIGH SIDE, is the dollar still up?
Few weeks ago, a single dollar was sold for N1900 and business people used that as the perfect excuse to increase the prices of commodities, and as at today, exchange rate from dollar to naira is $1 is equal to N1,395.46 ($1usd = N1,395.46). Nigerians just want to make more money out of every crises and this is not helping out economy despite the fact that dollar has gone down, many business men and women still don't want to reduce the price of things, even the new stuffs they bought are still sold at the old rate which is really really bad. I think the government should do something about this before things get out of hand.

In a very good economy, the prices of things are regulated by the government. Some commodities that are not affected by the rise in the dollar are sold at a high price and the dollar is been blamed for the increase. A fisherman who goes to the river to fish will sell his fish so costly and then tell you that it is not his fault that everything has increased in the country. This is similar to the vegetable and periwinkle sellers in the market.

Well, I'm not surprised because if oil touches one finger other fingers are affected. Applying this adage to this discourse, most of these sellers whose commodities are not affected by the dollar do not depend on only the commodities they sell for survival and that is the reason they increase prices so that they can afford other necessities.

[Charles-Tim]

The fact that dollar has dropped to 1,300 doesnnot necessarily means that the prices of things will follow immediately.

It may not even follow at all with the way government are manipulating. Deflation is not good as inflation is not good. What that is good is a stable economy but Nigeria is not having that. Maybe that is where our government is working towards. About the price of price of goods, know that not only dollar that has effect. Other things, most especially diesel that the manufacturers are using is still part of it. Diesel price was also increasing and has been the part of the reasons goods are expensive.

[SmartGold01]

The fact that dollar has dropped to 1,300 doesnnot necessarily means that the prices of things will follow immediately.

It may not even follow at all with the way government are manipulating. Deflation is not good as inflation is not good. What that is good is a stable economy but Nigeria is not having that. Maybe that is where our government is working towards. About the price of price of goods, know that not only dollar that has effect. Other things, most especially diesel that the manufacturers are using is still part of it. Diesel price was also increasing and has been the part of the reasons goods are expensive.

Okay.. Petrol, Cooking Gas, fuel and kerosene as well has also top for that past 8 months, so we have to consider this. While we pour out anger to dollars we have forgotten all these things that they are sole contributors to increase of food stocks and other usable materials, such as housing, building material and importation of cars.
Just of recently I went of to priced a toyota corola the popular one used by bots drivers is worth 5.7m, which is approximately 6m for a car that was sold for 1.7m. Even as that people are still buying without complain while those who can't buy are just waiting for the decreased in price, and we know how our country is, whatever that has gone up always refuses to go down.

[Dr.Bitcoin_Strange]

The fact that dollar has dropped to 1,300 doesnnot necessarily means that the prices of things will follow immediately.

There are merchants that bought their goods while the price of dollar was still at 1700 - 1900 (referring to imported goods), so you won’t expect them to start selling at a lower price just because news of dollar rate is now circulating - just wait a bit before you start complaining.

Exactly what I was explaining to a friend about the price of things currently in the country, but he asked me a question and I felt like asking it here too.
Are you sure that the cost of things will go back to normal again?
If yes what is your reason.

It's a really complex question, and it's hard to say for sure what will happen with the cost of things in the nearest future. But there's a chance that the price of things in the country might actually stabilize if the supply chain disruptions caused by the the economic crisis are resolved, then the cost of goods may decrease. We can also say that if inflation levels return to normal, that could also cause prices to stabilize. But the big question is, are the government willing to put in the necessary efforts and resources to make sure this goals are achievable because it'll require a good amount of effort and resources, not just from the government alone but also the citizens who are in the trade chain, because some of the price hikes are not from the producers of the products but from the wholesalers and the retailers on the quest to make massive gain, they hike the price of things, taking advantage of the general public because they know that people would still buy regardless the price and all they can do is complain

[Charles-Tim]

Even as that people are still buying without complain while those who can't buy are just waiting for the decreased in price, and we know how our country is, whatever that has gone up always refuses to go down.

This is what some people are thinking. They are thinking that because the price of dollar has decreased significantly, that the price of goods will follow in decrement. Also as marketers said it is possible for petrol price to reduce if the refinery in Port Harcourt is fully functional by next month. People also think the price of other crude oil by-products will be reduced. I will not believe all these until I see the changes because like you said, what goes up in price in Nigeria is not coming down in price back.

[Dr.Bitcoin_Strange]

Even as that people are still buying without complain while those who can't buy are just waiting for the decreased in price, and we know how our country is, whatever that has gone up always refuses to go down.

This is what some people are thinking. They are thinking that because the price of dollar has decreased significantly, that the price of goods will follow in decrement. Also as marketers said it is possible for petrol price to reduce if the refinery in Port Harcourt is fully functional by next month. People also think the price of other crude oil by-products will be reduced. I will not believe all these until I see the changes because like you said, what goes up in price in Nigeria is not coming down in price back.

I understand your skepticism It is frequently difficult to believe promises made by the government, particularly when it comes to economic issues. Even if the price of crude oil and its byproducts falls, it is uncertain if this will be reflected in lower commodity prices. The market is complex, and many other factors can influence prices, such as the cost of transport, manufacturing expenses, and so on. So it's not as simple as looking at crude oil prices or the US dollar's movements. There are so many other factors that should be put into consideration before the price of things can successfully drop 

[SmartGold01]

Even as that people are still buying without complain while those who can't buy are just waiting for the decreased in price, and we know how our country is, whatever that has gone up always refuses to go down.

This is what some people are thinking. They are thinking that because the price of dollar has decreased significantly, that the price of goods will follow in decrement. Also as marketers said it is possible for petrol price to reduce if the refinery in Port Harcourt is fully functional by next month. People also think the price of other crude oil by-products will be reduced. I will not believe all these until I see the changes because like you said, what goes up in price in Nigeria is not coming down in price back.

Not all, all need is patient and certainly things will drop but not as immediate effects as we may have think.
What gives you the assurance in Port-Harcourt refinery gonna work soon, I was actually taking the Lagos refinery to function before that of PHC, with the recent news I have been hear from Dangote refinery I was shocked till date the project has never set up to start operation as it planned.

[Penlex_Writer]

The cost of things will continue to remain on the high side because the leadership is not making a reasonable effort to ensure that people have to spend little to survive. When a system is bad everything in that system will be bad also. For things to change for the better, we have to change the way we do things in our country. If we can revamp our economy things will get better and the cost of living will be affordable.