but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
Sellers are fast to increase the price of goods, but slow to reduce the prices because of the opportunity they have to make profit through these market fluctuations. Before the prices of things can actually come down, a lot of factors have to remain stable for quite some time to affect the market prices. The dollar exchange rate has to remain stable, scarcity of petroleum products has to not occur, there has to be peace and security in the rural areas where farming activity is a major thing so that farmers can go to their farms and make products more available increasing supply more than the demand etc. 
Topic: What makes cost of living still high in Nigeria when dollars loose value. - page 2. (Read 269 times)
March 29, 2024, 03:30:03 PM
March 29, 2024, 06:39:02 AM
I guess the government do not want deflation but just want to manipulate things in the way that will only favour themselves (the government).
Accurately correct. This is my believe and that is what's going on right now. The government are fully aware of their own roles that is needed to be played to make life easier for its citizens, yet they choose to look towards another direction and try to manipulate the inflation. If our government are really concerned about our welfare they would have removed the fuel subsidy when they saw that the citizens are suffering from inflation to help reduce the the cost of fuel so that transportation would reduce. But they kept deaf ears and try to put the blame on cryptocurrency p2p.
When it comes to reduction of price of things as the naira gains value, I'll say it's let give the market a little time. Most traders bought some of their goods at high price so we cannot just expect them to sell at loss just because the price just reduced.
March 29, 2024, 05:56:39 AM
That's Nigeria for u but the first thing that the price is supposed to have gone down is fuel since we do import fuel and for local commodity it seems there is scarcity of goods and don't the law of supply
March 28, 2024, 06:57:08 PM
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One thing you also need to know about the price of goods as a businessperson is that the rate of the dollar has decreased and the naira has started gaining little value over time, but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
One thing you also need to know about the price of goods as a businessperson is that the rate of the dollar has decreased and the naira has started gaining little value over time, but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
How did you know they got old stock at old rate? Its the same traders that immediately rushed to sell goods at higher price when rate shot up. It's the same story every time. It's no longer news that traders often take advantage of the situation in the country for personal gain. I recently had an encounter with a close friend who works in one of such establishment and got first hand information that it is the norm to manipulate prices of goods amd services for personal gain. I discussed in a similar thread yesterday about the lack of regulation of prices by government as part of the reason for intentional hike in prices.
March 28, 2024, 05:27:07 PM
The price of things is being influenced by the high rate of the dollar,, and things that are only supposed to be affected in countries like Nigeria are those that are imported from outside the country using foreign currency.
Which means as dollar increased in the past, goods imported become costly. Then why local production also increase in price. Everything are directly or indirectly linked proportionately. I do not see both imported and locally made goods decreasing in price. One thing you also need to know about the price of goods as a businessperson is that the rate of the dollar has decreased and the naira has started gaining little value over time, but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
You are not getting it correctly. The prices of the goods are increasing. Not that the prices decreased and sellers still wants to sell at high price. No it is not. Another problem that some countries like Nigeria also have is the problem of lacking price control over certain things that the sellers are selling above what they should be selling on the open market. They take advantage of every given situation to make massive profits from the market.
Diesel price is still high and this is not yet about price control. Also know that it is better for the government to stabilize the economy than to be looking for deflation to occur. I guess the government do not want deflation but just want to manipulate things in the way that will only favour themselves (the government). hero member
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March 28, 2024, 05:18:13 PM
The price of things is being influenced by the high rate of the dollar,, and things that are only supposed to be affected in countries like Nigeria are those that are imported from outside the country using foreign currency.
One thing you also need to know about the price of goods as a businessperson is that the rate of the dollar has decreased and the naira has started gaining little value over time, but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
Another problem that some countries like Nigeria also have is the problem of lacking price control over certain things that the sellers are selling above what they should be selling on the open market. They take advantage of every given situation to make massive profits from the market.
One thing you also need to know about the price of goods as a businessperson is that the rate of the dollar has decreased and the naira has started gaining little value over time, but most sellers and dealers of goods still have old goods in stock that they bought at an old price, so we can't expect them to start selling at a new price; it might affect their business.
Another problem that some countries like Nigeria also have is the problem of lacking price control over certain things that the sellers are selling above what they should be selling on the open market. They take advantage of every given situation to make massive profits from the market.
March 28, 2024, 05:09:24 PM
I'm surprised when dollars loses value and the cost of things still remains high. now dollars have dropped a little but still yet the cost of goods in the market still Sky rocket, I don't understand the reason why dollar drop and cost things are still high, some time I wonder if Nigerians are using dollar purchase in the local market. what makes me worried soo much is our local food,the seller keep telling me dollar have increased, now dollar has been slash down a little the cost of living still remains the same.what is happening to my people.
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