World bank says Nigeria’s 2024 inflation rate will drop to 24.8 per cent

[Charles-Tim]

Naira has increased in price. Imported products prices has gone down. But why the price of local products still high? Although, this is not a question but an evidence that something is wrong somewhere.

https://www.channelstv.com/2024/04/09/world-bank-says-nigerias-2024-inflation-rate-will-drop-to-24-8-per-cent/amp/

Some people said the price of local goods and services can not just come down, but which is not right to my hearing. Phones, laptops and electronics that was sold at ₦100000 when dollar was around ₦1900 are now around ₦60000 when dollar is ₦1101.

Those selling local products are the ones that are gaining more now as the prices of local products is not decreasing and that is still inflation. Inflation of local products.

I am hoping what world bank speculated will become true but it is still the opposite as of now if talking about local products. Although, this year is not yet ended, we are even still in the first quarter.

[Cryptsafe]

You are right sir. I was wondering what was wrong with our local producers when I asked them some questions and I realised that they were owing it to the fact that transportation price was high as at the time of purchase of raw materials. So therefore they would want to recover their money back from the previous stock before any further reduction in price of their finished products.
However, some are just doing such as a result of their ignorance. I asked one the other day and got no tangible response from her as the trader was a female. To my greatest surprise she told me she is not the only one selling on the high price that until the others reduces their prices, she would not bother doing such that she would have to join in making profit before anything happens. You can just imagine the ignorance and wickedness.

[SmartGold01]

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.

[Agbe]

Some people said the price of local goods and services can not just come down, but which is not right to my hearing. Phones, laptops and electronics that was sold at ₦100000 when dollar was around ₦1900 are now around ₦60000 when dollar is ₦1101.

I really don't understand why things that have no dollar connection are on the high price. On Tuesday this week, I bought garri with #2,500 and only for me to discovered that garri now in my location is #3000 while in the interior village, a cousin called me this evening saying that it is $5,500 just for one custard rubber. Charles -Tim thank for bringing this thread, I didn't know that imported things reduced in price.

we are even still in the first quarter.

We have started the second quarter of the year. There are four quarters in the year and the first quarter starts from January to March while second is from April to June and just like that with three three months.

[Cryptsafe]

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.

This point you have cited is amongst the reasons why products price seems to still be on the high side.  Just like I said initially, people who bought at the high price when dollar was high would not agree to sell with the current price  because of they do, they would make huge loses so they would want to recover first before they sell the current market price.
What is most baffling is how the locally made products price are still very much on the high price. I was wondering if the products are locally imported produce or they were planted with foreign soil here in Nigeria. I still can not really correlate these stuffs and why our very own locally produced goods would be very costly and expensive mean while the imported produce are beginning to drop in price. How do you explain this.

[Charles-Tim]

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?

[SmartGold01]

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.

[Charles-Tim]

@SmartGold01

A phone sold at ₦520000 few weeks ago or one or two months ago is now sold at ₦415000. I checked as laptop sold at ₦580000 few weeks ago, it is now sold at ₦475000. As the dollar price are decreasing, the price of those foreign products are decreasing almost immediately. If they sell at lost while other are selling at lost as deflation occur, no one will still lose if it is balanced.

You are selling phone, the price reduce.
You want to buy laptop and the price has also reduce. Which means you do not lose as other goods are reducing.

But the problem now are the local products. I mean products produced within the country that the prices are not decreasing which will make some people to lose while some people (local products sellers) are gaining more. There is imbalance already.

[SmartGold01]

@SmartGold01

A phone sold at ₦520000 few weeks ago or one or two months ago is now sold at ₦415000. I checked as laptop sold at ₦580000 few weeks ago, it is now sold at ₦475000. As the dollar price are decreasing, the price of those foreign products are decreasing almost immediately. If they sell at lost while other are selling at lost as deflation occur, no one will still lose if it is balanced.

You are selling phone, the price reduce.
You want to buy laptop and the price has also reduce. Which means you do not lose as other goods are reducing.

But the problem now are the local products. I mean products produced within the country that the prices are not decreasing which will make some people to lose while some people (local products sellers) are gaining more. There is imbalance already.

Here is what I mean by no Union, when there is union to stabilized the price of local products then every goods or every shops would start having same price. Just as we do have the petrol monitoring team, every states has their team they goes by all fueling station to check what price they are selling and if they noticed imbalanced in price of fuel station they have to sanction the Manager or CEO. If this same thing is being applied to local products then I think it will reflects as the dollars keeps reducing.

[Charles-Tim]

I have just read the news from The Channels about how food inflation in the country increased in March as compared to February of this year.. if you are interested, you can also read the news but it is not new to us as we know that it is the truth.

https://www.channelstv.com/2024/04/15/breaking-nigerias-inflation-rate-hits-33-20-as-naira-rebounds/

Dollar decreased in price to naira but inflation still continues. But I still think few local products like Indomie dropped in price recently in this April. Although, things has not been in a way we notice deflation as the price of other local products are still high.

I really don't understand why things that have no dollar connection are on the high price. On Tuesday this week, I bought garri with #2,500 and only for me to discovered that garri now in my location is #3000 while in the interior village, a cousin called me this evening saying that it is $5,500 just for one custard rubber. Charles -Tim thank for bringing this thread, I didn't know that imported things reduced in price.

I also noticed increase in garri price recently. It increased to ₦1500 per rubber in my area and I think you are talking about 2 rubbers which some require regarded as 1 tier of something.

We have started the second quarter of the year. There are four quarters in the year and the first quarter starts from January to March while second is from April to June and just like that with three three months.

Second quarter will start after April. Divide the 12 months into 4 and each 4 months are one quarter.

[Agbe]

Second quarter will start after April. Divide the 12 months into 4 and each 4 months are one quarter.

I also listened to the channels discussion this morning though base on house chores I didn't listen to the end but they were making sense and the guest speaker was saying that the best to regulate the food price in the country is for the president to invoke the price control agencies in the coun and also the ministry of agriculture should also do their work to make sure that food items price should come down. He also said that, Dangote refinery will help to reduce the preces of things. But even as things will come down in price, inflation will still rise again.

Lolz. Charles -Tim you are good in the technical boards or wallet Boards, this is my field of study so just leave anything quarterly for me to analyze. Only as you said, let me just give you the calculation. 12÷4=3. And that is 3 months form one quarter so from January to March is first quarter, April to June 2nd quarter, July to September is the 3rd quarter and finally October to December is the 4th quarter. So if you are saying that 2nd quarter starts from April then you have your personal quarterly analysis of the year or you have to provide another extra months to make up the quarters. If you can remember when I first entered BTT, one of my thread I created was quarterly and because of the attacked base on the suggestion which says, the forum activities should be in quarterly. And a forum user told me to moved the thread to achieve.

12÷4=3 and not 4.

[Charles-Tim]

I also listened to the channels discussion this morning though base on house chores I didn't listen to the end but they were making sense and the guest speaker was saying that the best to regulate the food price in the country is for the president to invoke the price control agencies in the coun and also the ministry of agriculture should also do their work to make sure that food items price should come down. He also said that, Dangote refinery will help to reduce the preces of things. But even as things will come down in price, inflation will still rise again.

The federal government are the cause of what is happening. The best is a stable economy. It would have been better to make naira less volatile than manipulating the price which makes it volatile up and down. The solution to this is if the government tries to regulate the price, but this would not have become the problem if they did not manipulate the price. Even this is taught in basic schools.

Lolz. Charles -Tim you are good in the technical boards or wallet Boards, this is my field of study so just leave anything quarterly for me to analyze. Only as you said, let me just give you the calculation. 12÷4=3.

You are correct about this. Although, there is nothing hard about it. 1/4 of 12 is 3. Which means each 3 months. But I just made the mistake that even a high school student knows the answer. It is not about good in technical board or not but it is a high school work. It is even thought in basic schools.

[Agbe]

You are correct about this. Although, there is nothing hard about it. 1/4 of 12 is 3.

we know ourselves over there. Yes it is not hard but just consciousness. And yes the policies of the federal government and the inactive of ministers in those areas are the cause too. If the government regulate the prices of goods and services then he has to warn it agencies like Road safety and Police and environmental services not to disturb businesses, businessmen or women use those unlawful taxes to increase prices. And also will the agencies of those regulatory bodies do their work well? We have a lot of problems in the country, SON is an another problem we have, they accept substandard goods or items to the country and those businessmen sell it in a higher prices. And all those things should be looked into.

As it is the former Governor of Kaduna state is accusing the president now that, he is paying fuel subsidy secretly. And fuel is still high. How? 

[Charles-Tim]

As it is the former Governor of Kaduna state is accusing the president now that, he is paying fuel subsidy secretly. And fuel is still high. How?

I do not know if the federal government are still paying for fuel subsidy, but it can be true. If you notice that as inflation increase in Nigeria, PMS price did not increase. It is possible that the price has actually increase but the government start paying the subsidy again. But some refineries are working in Nigeria now which may be the reason the price of PMS is not increasing as the local supply increases. According to the news I read last month, marketers said if the refinery in Port Harcourt is fully functional, that it is possible that the price of PMS may reduce. Although, I do not know how true this would be.

PH refinery: Marketers eye fuel price reduction, ready to load

[Sim_card]

As it is the former Governor of Kaduna state is accusing the president now that, he is paying fuel subsidy secretly. And fuel is still high. How?

I do not know if the federal government are still paying for fuel subsidy, but it can be true. If you notice that as inflation increase in Nigeria, PMS price did not increase. It is possible that the price has actually increase but the government start paying the subsidy again. But some refineries are working in Nigeria now which may be the reason the price of PMS is not increasing as the local supply increases. According to the news I read last month, marketers said if the refinery in Port Harcourt is fully functional, that it is possible that the price of PMS may reduce. Although, I do not know how true this would be.

PH refinery: Marketers eye fuel price reduction, ready to load

Yes Rufai claims that the FG has spent over 8 billion Naira on fuel subsidy, and that is why we are buying petrol at the price of 670, that if not petrol would have be as expensive as diesel. I am shocked to hear this, because I thought that subsidy on petrol have been removed by the new administration in May 29th.

You can read it here https://www.vanguardngr.com/2024/04/fg-still-subsidising-petrol-in-trillions-of-naira-el-rufai/