Traders cry out over rising inflation

…says CBN must overhaul fiscal policies

By ODUNEWU SEGUN

WITH inflation figures for February put at 11.4 per cent year-on-year an increase from the 9.6 per cent it stood in January, and the prediction that it is likely to move up to 11.40 per cent before the end of this month, the hike in price of commodities is gradually making a section of the Nigerian populace lose hope in the government.

And with the naira trading at N320 against the dollar, many Nigerians are lamenting the astronomical leap in the prices of staple foods and other commodities. Cost of cheap.

A survey by National Daily of some major markets in the country showed that prices of almost all food items have gone up. The survey showed that the price of a 50kg of rice and a big bag of beans which sold for N10, 500 and N13, 000 over the early this year now sell for N12, 000 and N17, 000 respectively.

For instance, madam Folashade Idowu, a trader at Mushin market said a carton of fish now sells for N13, 000 as against the previous price of N10, 000 and that a four-litre gallon of vegetable oil which was N1, 200 but now goes for N1, 600. According to her the hike in food prices has crippled businesses as she and her colleagues no longer enjoy high patronage.

Lamenting the high cost of foodstuffs, Mr. Andrew Ikezie said the importation of frozen chicken was banned by the federal government in 2015 and this affected the price of the chicken. A pack of frozen chicken used to be N6000, but now it is N8, 500. “The price of turkey, which used to be N7, 500, is now N9000. A pack of fish used to go for N7000 or N8000 but now it goes for N12, 000.

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At the Mandilas shoe market in Lagos Island, a shoe seller there lamented bitterly that there has been a lull in patronage. This, according to Chidi a dealer in male shoes- is because, “the prices are too high these days. “An average pair of shoes that we used to buy for N1, 500 is now about N2, 500 from the manufacturers. How much am I expected to sell it? “This administration has thrown us into serious hardship and we are very unhappy about it.”

“What is causing the fall of the naira against the dollar is something many of us are unaware of, but we need the president to handle this matter with dexterity otherwise, the suffering common man will revolt.”

As a result of this worsening situation, some experts have called for the devaluation of the naira but industrialist like the Chief Executive Officer of Erisco Foods Ltd, Chief Eric Umeofia disagrees. He said that although it appears that devaluation of the naira is the ideal solution to the problem, but warned the federal government from taking such a step, saying it would not augur well for the country’s economy.

Also, Economist, industrialist and manufacturer, Henry Boyo, says that depreciating Naira portends woe and deepening poverty for Nigeria. “It is clear that depreciating naira portends woe and deepening poverty for our country, particularly with regard to industrial survival, employment, inflation and national debt,” says Boyo.

Mike Dada, Managing Director of PRM Africa, a Nigerian owned SME, lamented that the high naira-dollar exchange rate is scary and dangerous for businesses, and urged the CBN to do something about the country’s fiscal policies.

“This is a dangerous situation and I think we need to get our fiscal policies right. The high naira-dollar exchange rate is really affecting business and the government should think outside the box and be innovative,” Dada said.