Topic: How dollar rise take affect the prices of things? (Read 344 times)

D way the matter take dey disturb you and no know how dollar take dey affect price of goods for Naija na wetin make me wan know too long time ago. E come be like say na intentionally our people dey do dis thing because me too don reason am say, if we fit dey produce some locally food items here, why the price go still dey high for here? Some people go talk say na because of say one way or the other, you must wan use product wey dem import and e go affect your business or calculations if you no go get am d way you dey get am before, so must people just sell high as a result of that event to make it balanced when them wan go out to buy other commodities too. All dis things no be koko as a I believe say na price regulations wey no dey work for our country dey cause all dis things.

   E dey affect because na the same Naira we dey spend for the country. See o ,who dey sell or do garri go wan buy iced fresh fish, chicken,or tin/sachet tomatoes,and the prices for all these things don go up , how him go do take meet up so that him and him family go eat,na to put money for the garri or indomine wey him dey sell or produce,so that e go fit buy fish and chicken wey the price don cost to eat ,na so e b for who dey village too, because wen them sell their market e no go worth the money wey dem go take buy wetin dem go eat,   abi na transport wey don go up? dem must meet up, na him make price increment dey affect everything and everybody .

See as e be my brother.

Check your house, from electronics items in your home down to kitchen items, they are 99% imported into Nigeria, even if some of them are assemble in this country, they are all imported into this country. The cars you have around are imported and when you check all of this, you will realize that dollars is generally acceptable method of payment for importation of goods to this country. Now, because of our dependency on this imported items, people need dollar to buy this items to be shop to Nigeria but dollar isn't that easy to get because Banks no longer give dollar to individuals anymore, so it's creating a high demand and people are giving out all their naira just to be able to buy goods from outside country. The scarcity of this dollar is making people give more naira to get dollar and it's killing the Naira because the demand is high.


This has been on the increase since June 2023, people need dollar, they don't need Naira to do all this things and since we don't export things much like we important, it's weaken the Naira every day as more demand for dollar keep increasing.

So because importers increase the price of their goods because of scarcity of dollars since they are imported, the person buying from them to resale will also increase their own and that will equivalently makes other people to adjust their sale higher so they can meet up with the other commodities that have increased in sales.

Farmers services has increased in price, a fertilizer selling for ₦25k last December is now ₦38k, you don't expect the farmer to sell his products cheap after fertilizer sales has increased. These are the reasons why things are expensive and the economy is slowing down in development and that's as a result of high dependency on importation.

The rise of dollar in Nigeria na as a result of economic factors wey dey affect de country and these factors na, inflation, our economy no dey stable and government policies. Inflation go fit decrease the purchasing power that is the amount of goods and services dem go fit buy with a currency and if U check na mostly dollar we dey use because most goods and services are imported and our currency value dey decrease so ee go make those good expensive impacting de prize for stores.

Locally, how ee take dey affect prize of good and services na mostly cost of fuel and transportation. Exchange rate dey affect fuel for Nigeria because of imported fuel and once de prize of fuel dey high transportation go increase
just imagine transporting fresh tomatoes from north to south and most of our locally made goods here e.g like garri U go need grind am and grinding machine dey use fuel so dem go add prize and after grinding U go transport am go Market to go sell so U see am say dem sef go calculate dere expenses den add prize to get gain. This dey applicable to others also like palm oil, some products U go buy  raw materials and transport am from one region to another or inter-state. So increase in fuel prize and high cost of transport dey really affect our goods and services locally.

My brother you see this aspect of complementary and agreeing doesn’t hold water over here cause of greed let me break it down abit to give you a bit of why it’s not agreeing the country we spend to transport our products over there to be refined, we then buy it back at international rate from them pay for transportation of the said petroleum products on arrival we dispatch them to various tank farms and other storage facilities.
Now it’s in the country our dearly beloved oil marketers then buy it from those importers like the government and other private firms now each marketer buys it at a different rate adding as little as 10naira per product as profit some 5naira now when distribution begins you cannot get a fixed price anymore because MrA bought at 555naira while MrB bought at 560 little difference but in the grand scheme of things makes them a lot of profit.
This is Nigeria where there are no regulations and when there’s one bribes are given to look the other corruption as eaten too deep into the core of this country and we need to cleanse ourselves for a really better Nigeria.

No country dey make better progress if the only thing dey depend on na import and consume. This thing don worry Nigeria wella and including other African countries. This na thorns for the flesh of African countries.

This one na the real Koko boss man. We Nigerians sabi take unnecessary advantage over our fellow Nigerians. As the way things be now, you go notice say 3 grocery stores in your street are just selling different prices. Many of those prices are not market prices but just generated by the sellers in the name of bad economy.

Omo when u mention garri sef I nearly cry this things na matter wen we all supposed know. wetin concern cassava concern dollar. These questions na questions wen we Dom ask ourselves tire but we come know say Nigeria no dey like follow who know road Nigeria no reason common man wellbeing if not how everything wen Nigeria dey deal with go be importation of goods and now dollar come be the main currency for foreign trades so anything wen dey deal with import dey deal with dollar.

. We Nigeria get one of the best oil drilling but where to take refine this oil come be problem so we sell this same oil wen we get, go back buy am come sell for high price for that case import Dom enter dollar Dom dey involved farmers need engine to grind garri we know how much be one litre now come consider transport.

The best thing for every Nigerian citizen now na to look for work wen go pay in dollar as to meet up and for me I think Bitcoin na one of them.

I understand say maybe you think say na only to dey import goods dey make naira fall and dollar com dey go up but then you need to understand say apart from those final consumables wey we dey import we dey also import raw materials wey we dey use to facilitate local production especially in the transportation system and dat na why e dey always affect even w b say na our locally produced products dem, because when dem produces dis tinz dem, na transport dem dey use move am from one place to another but then we now no dey refine or produce our petroleum products so when dem import am at high price e dem make the transporters increase the price of d fare too.

Another tin b say when things hard like did local producers dey carry price up so dat dem sef fit survive de economy and still dey in business because we no dey get everything locally, even for local production we dey need some foreign materials to help facilitate all these things.

Na very thoughtful question you ask. I hope you still dey follow this thread make I for lend my voice for the contribution. I no be really economics student but I know small how things work. Make I highlight things out;

• Majorly electronics are impacted directly by dollar because na direct dollar to naira trade
• Another thing wey dey high goods na clearance for airport 
• Major thing wey dey high domestic goods no be dollar but cost of transportation which wetin cause am na high price of fuel 
• Upon all these, global inflation still dey
• Again, the effect of recession wey Nigeria enter years ago never commot

We no dey expect better unless go save us.

Their are somethings wey no get anything to do with dollar but still the price still dey go up. Their are things that are made here in naija, not even imported but the price they go up. Wetin me I Don notice from naija people is that them dey like to take things for advantage.  Any slight opportunity Nigerians don see ahm as opportunity to make money and after we go dey complain say our government bad and we common people we no fit even help ourselves.

E dey for people to get plenty sources of money or dey do plenty work at the same time. See some ways wey fit help you balance one job.

Find small-small work wey you fit do wey no go take all your time, make e match with your main job or other things wey you dey do.

Use your skills or wetin you sabi do to do work for people on your own time.Find work wey you fit do from house wey you no go need to go office every time.Try work for gig economy platforms like Uber, Lyft, TaskRabbit, or food delivery services, where you fit choose when you wan work.

Find job wey get flexible time or wey you fit change your time based on other things wey you dey do.

Do work wey dey happen only for some times of the year, like selling for Christmas time or helping people with tax during tax season.
Turn the things wey you like do for fun into money like selling handwork online, teaching music or taking pictures for people.
Start small business on the side wey fit match with your skills and interests, whether na small online business,consulting or some other service wey you fit offer.
Make sure say you dey manage your time well so that you fit do both jobs well and still get time for yourself and rest.

Before you start second job, think well about how much time e go need how e go affect your balance between work and life and if e dey in line with your long-term goals and interests. Also check your current work agreement to make sure say you no dey break any rules by doing another job.

Normally things no supposed be like this but Nigerians like to dey cause problem for ourselves. Honestly 70% of what we consume in this country are imported. With this being said prices of things are are going to rise as Naira weakens against the dollar. You as a garri seller will go to the market and buy other things high so in order for you to meet up you will increase the price of your garri. So are other traders doing that's why other things which are produced locally are also increasing in prices. Secondly why the price of locally sourced materials are increasing is because of cost of transportation and insecurity farmers are facing. People will go to farm and they are kidnapped, killed and women rapped. Because of this many people are scared of going to farm and when there are many people chasing few goods prices will definitely increase.

The effect of the dollar rise in our country is because, first of all, the higher the difference between the dollar and the naira the less value the naira would have. When the naira has less value, its purchasing power will reduce i.e. when you go to the market 10k can't buy what 10k used to buy.

Another reason would be that Nigeria doesn't produce most of its commodities instead imports from other countries and depends on the dollar exchange rate to pay for those commodities. So when the dollar per naira increases, we pay more and of course sell at a higher rate. There may be other reasons though... but these are the 2 important reasons why.

This no be typical question way concern the forum but still, we get corner for the forum as Nigerians and this na something way Dey affect us so, e no bad to talk about am.

No be lie say, there have been a dollarization of our economy so tay, our currency don fall for ground yakata. E don turn one means to spend big and if you Dey deal in dollar, e go con look as though, na you Dey run the town. The matter just cast and e start from the top con enter the bottom.

Now where the matter spoil be say, we no Dey value made or produced in Nigeria. You for think say na for imported products e end o but, e Dey materialize for we everyday and even local products via say,
Mama way Dey sell maggi, e go like carry money way e realize buy salt. Mama way Dey sell salt, e go like use the stock fish. Brother way Dey sell stock fish, e go like use the money buy body spray, wrist watch, phone and so on. Na from there the money Dey grow, from the person way Dey sell imported items. E go increase am to meet up en sales. Person way wan buy from am, e go increase the service or product e dey sell to use generate money way e go use buy from person way dey import items and just like that, the trend continues.

Na the effect of your country being a consuming country and not a producing country, wetin we sabi for this country na to just dey consume and we dey import 90% of things wey we dey use for this country and when we dey do international deals na dollars we dey use so anytime wey we dey import and is being affected by the price of the dollars.

The major things wey we dey use for this country is imported, the fuel, electronics and major food suppliers are all import so dollars dey affect all this things and your local garri or product seller also gets affect so she too go come add price too as the cost of productions dun increase and she go also need better profits to use buy those other things then wey dun increase. Transport hikes comes from fuel price increasing and since we dey use dollars buy fuel, if the price of dollars increase because of the depreciation of Naira dat one go affect everything wey dey market as they all get transported.

Lastly, out of greediness some market women and men go always take advantage of the increase of dollars to increase their own prices even as na old stock while some need increase even though na old stock because dem need make profits to use buy the new stocks when them go go market go buy new market.

Not just Fuel per se. Most of the increase in prices are also associated with inflation, although fuel subsidy removal was the initial backbone for all these because it also affects the increase in Naira value, which means it contributed to the Naira devaluation since all businesses that need fuel need to convert their money to USD to buy fuel abroad.
This hardship we are facing is also based on our selfish interest; even some goods we do produce by ourselves are expensive just because of the trend of dollar price, and if we looked at the whole scenario, we the poor are the ones suffering from all these; nevertheless, we need to take serious major to bring an end to market price manipulation.

As Nigeria dey so now, na two things dey make price high and them be fuel price and dollar to Naira exchange rate. Okay for the fuel price now, when transportation put money because of say transporters buy fuel high so market people too go add money for wetin them too dey sell because them need to cut cost too, nobody want gree for anybody.

For dollar own nko, we sabi say naija no dey produce something and so most of the things wey we dey use na by import and you have to buy dollar to do that so it gives dollar more value than Naira plus the politicians wey dey store dollar for their houses. Some politicians and governors no dey use naira but dollars and that further weakens the Naira. Some countries wey dey serious dey use their currency for anything dem want do.

You are right. When the price of fuel increases, every single thing in Nigeria gets an increase in price, whether the imported goods or things that have been produced here. Petroleum is an imported product, and the reason why it affects everything is because the fuel is what the traders and businessmen and women will use to bring those things into the market to sell or buy, so since it’s a business and every single thing you spend must be calculated in order to know how much you spent and how you are going to sell and get your profit, you can see that there must be a high increase in the price of those things.

However, if you look at it since the price of fuel has increased, everything is costlier in Nigeria, so when the dollar rate gets high, things become worse for the citizens because most investors that buy something from foreign countries use dollars to purchase those things. You can see that if they bring them here to sell, they will also add some money so that they will also gain.

Exactly, the way naira is been presented is actually what affects it. Naira isn’t treated as a currency that should be regarded for storage. This can be done just as you said by not only using the dollar currency for every transaction but also the naira should be used. Imagine having to sell our crude oil to another country using another currency which is not suppose to. You need to give people reason to hold your own your own currency before it generates value.

Another reason why Naira also depreciates is the excessive printing of its paper money, most top currency in the world mostly put regulations in the number that should be printed so as to have a limited number of that currency but that is not it.

As to OP what actually set the price of things high when there is always dollar price increase is sometimes people selfish interest there are some markets that dollar hasn’t actually touched but they are increased due to others increasing there’s and not necessarily the dollar affecting it

Normally anything we no dey important no supposed dey expensive why because those things we dey produce am here locally but they only wey I think this things take increase na transportation. Imagine say fuel na 660 or 680 per littr and you wan carry goods from East to west and you know how much you go spend to take transport am only that alone self supposed make those small things dey expensive.

 Naturally no be dollars dey cause am na just fuel and transportation if you say you no wan enter public vehicle then carrying your personal car is the worst because fuel wey you go take fuel send your goods across the state alone self don dey equivalent as dollars price whereas everybody come dey put am for dollars head. na just few things dollars dey control.. but we wey be 9ja wey dey always take opportunity of any small thing wey go affect we country.