DOLLARS HAS CRASHED FROM N520 TO N360 YET PRICES OF GOODS REMAIN HIGH: WHOSE FAULT?

DOLLARS  HAS CRASHED FROM N520 TO N360 YET PRICES OF GOODS REMAIN HIGH: WHOSE FAULT?

                              By:
               Nurudeen Dauda 
               29th March, 2017
nurudeendauda24@yahoo.com
nurudeendauda24@gmail.com 
nurudeendauda.blogspot.com

The reasons for the Naira appreciation has been increased in the price of crude from as low as $27 a barrel in January, 2016 to $56 in January, 2017. Also, the relative peace in the Niger Delta which increased daily crude production from as low as 900,000 to 1.9m barrels. These have raised our foreign reservers from $24bn to $30 which is usually used to support or depend the Naira. As situation changes policy are supposed be adjusted.

From the begin of Buhari administration the Vice President has been the one heading the National Economic Council (NEC). The only power giving to the V.P by the 1999 constitution is being the Chairman NEC. With the exception of this all other functions performed by the V.P are assigned roles. President Buhari has got a competent V.P and they have been having the best of working relations which is commendable. Keep it up!

The decision of the National Economic Council of 16th February, 2017(Ist in the year) has been responsible for the continuous crash in the Dollars to Naira Exchange.The National Economic Council(NEC) comprises of the 36 state governors, the governor of the Central Bank of Nigeria and other co-opted members. Established by the provisions of the Constitution of the Federal Republic of Nigeria (1999), as amended, Third Schedule, Part I, Section 153: Sub section (18 & 19).The NEC has the mandate to advise the President concerning the economic affairs of the Federation, and in particular on measures necessary for the co-ordination of the economic planning and programme of various Governments of the Federation.

WHOSE FAULT?

In my understanding, our big businessmen are partly to blame and then the import dependent nature of our economy. Nigeria is an import dependent economy. That is even why the price of dollars affect us so badly. As for our big businessmen the moment prices of goods increase even when they have goods in their stores and warehouses which they bought before the price increase they will immediately increase the prices of goods. On the other hand, if the prices fall they will maintain the old price till they sale all their goods in stores and warehouses. In some cases, it will even take long time before everyone realizes.

On the import dependent nature of our economy it takes an average of two to three months to ship goods from China or India or Europe or America to Nigeria. Shipment of goods is not travelling to China from Nigeria which requires some 20 hours or so. It takes time to get the dollars,travel and then ship the goods. There is another factor that delays the coming of goods to the end users especially in developing nations called port traffic conjunction perhaps due to inefficiencies. Let's our businessmen be patriotic! Let's grow local production and reduce import.

May God bless Nigeria!

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