The persistent rise in food and commodity prices despite the appreciation of the naira has become a source of significant concern among Nigerians.

The persistent rise in food and commodity prices despite the appreciation of the naira has become a source of significant concern among Nigerians.

This is against the fact that when there was a slight depreciation of the Naira, the cost of commodities immediately went up. And the traders lay the blame on the rise in the dollar to Naira exchange rate.

Why is this happening?

Adewale-Smatt Oyerinde, director-general, Nigeria Employers’ Consultative Association (NECA), says the tightening measures adopted by the Central Bank of Nigeria (CBN) have led to the appreciation of the naira, but lamented rising prices of goods and services in the economy.

“Despite currency appreciation typically dampening inflation by reducing import costs, other factors are exerting stronger upward pressure on prices. Supply chain disruptions, logistical challenges, and rising production costs continue to drive up prices across various sectors, amplifying inflationary expectations,” Oyerinde said.

He, however, hinged hope the Dangote refinery, saying its commencement of production and distribution of petroleum products, would positively impact transportation costs and other production expenses.

The recent Consumer Price Index report by the National Bureau of Statistics (NBS) for March revealed an increase in the inflation rate. In March 2024, the inflation rate surged to 33.01 percent, marking a notable uptick from 31.7 percent recorded in February.

This indicates a 1.31 percentage point increase over the period, reflecting the growing inflationary pressures in the economy. Moreover, when compared to March 2023, the inflation rate rose by 10.97 percentage points, further underscoring the magnitude of the inflationary challenge. But of particular concern to NECA is the spike in food inflation, which climbed to 40.01 percent in March 2024 from 37.72 percent in February.

Food inflation accounted for 17.2 percent of the total inflation rate for the month, highlighting the significant impact of rising food prices on overall inflationary trends. Additionally, the share of housing, water, electricity, gas, and other fuels contributed 5.56 percent to the total inflation rate, further adding to inflationary pressures across essential sectors.

Oyerinde believed that with time and the introduction of supplementary measures from the fiscal authority, addressing supply chain fundamentals, the inflation figure would begin to decline. He called on policymakers to adopt a holistic approach to addressing inflationary pressures and promoting economic stability.

seanfer:
We the Nigerian Citizens are more wicked than our leaders

Racoon:
The abracadabra economics of the government of a druggie. The more you see the less you understand.

seanfer:
We the Nigerian Citizens are more wicked than our leaders

Racoon:
The abracadabra economics of the government of a druggie. The more you see the less you understand.

socialmediaman:
You can’t build a country in this modern age without transparency.

They’re failing big time on transparency!

Racoon:
Meanwhile, the zombies of the government are still living in delusional fool's paradise.

alanto:
If someone mention una tribe now. Una go run to mod. Your propaganda will fall to shame. I have spent over 100k on food this month. I pray it wont be like that next month. If you guys desperately want to buy things that costly. Inflate your prices in the East.

saintopus:
Federal Government and States and Local Government should immediately set up consumer market where goods could be sold for a cheap price over a period of time.
For now I don't think price of goods would ever come down because the nature of the black man is defined by high level of greed and wickedness.