How to reduce the price of goods

[Gun Boat]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

[DVlog]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

Monopolies can manipulate the price of foods and if government let a single food distributor control the market this will likely to happens. If there isn't any competition in the market then a single controller will raise the price and govt can't do anything about it. To prevent this kind of issue govt needs to motivate other player to come to this sector and create a friendly environment to join the competition. This type of action will force the market to balance between cost and customer needs.

[Hatchy]

I think you should've posted this on the Nigeria board since it's about Nigeria's economy. Anyway, the high cost of food in Nigeria comes from several reasons. One is the high cost of  transportation, which happened because increase in price of petrol. Also, big farms and food factories use machines that need a lot of energy, and since petrol is costly, they have to charge more for their products. The cost of electricity in Nigeria is also high, and some machines need it to work. People try to find other power source e.g solar, which raises product prices. Insecurity is also  big issue, as farmers who are the primary producers are scared to go to their farms due to the fear of the unknown. Lastly, there are high taxes on production. all these put together i think is the cause of high price of goods in the country.

[serveria.com]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

How to reduce the price of goods? In short: stop the Russo-Ukrainian war. War makes fuel and energy prices soar, that causes inflation and prices are going up. Grain and fertilizers are getting more expensive due to port siege and sanctions. This war should be stopped ASAP and at any cost, while it's still possible to save Global economy from crumbling. 

[blockman]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

The law of supply and demand is what makes things cheap and expensive. If there's no competition in your area now and there are only a few sellers or producers of those goods. That makes sense as to why they're expensive. But if there are a lot of supplies of those goods then the market is free and will make it cheaper for the cost of it. And that's why when there's a bunch of supply in the market. Hoarding is one reason why there will be less supply of a certain good and that's what the government should watch out. But when these hoarders will just do under the tables and the problem is also on the officials, the problem can't be gone and consumers like you and me will have to deal with the effect of it.

[Nwada001]

Monopoly is not the only problem that Nigeria has. One of the major issues that the country faces in terms of goods prices is that there are more consumers than producers. Let's take Nigeria and its mentality aside. In a place with about 10,000 populations, only 10 are producers, and the rest of the people are purely dependent on what the 10 produce for themselves to buy and feed themselves.

What do you expect from a society where there is a large increase in demand for goods every day and a low quantity of production? They will have to make the only available goods more expensive in order for those who are desperately in need of them to buy them off, leaving the poor to live on hunger and starvation.
 
Let's also look at the northern part of Nigeria. Other parts of the country are experiencing a high cost of goods, but this is not the case as there are a lot of farmers available in that area and a lot of consumable farm produce comes from there, which makes life easier for those who are based in the northern part of the country. If any country can be more productive in the aspect of their consumable goods and deal less on importation, they are likely to experience price reductions on goods even if the distribution is done by one licensed body.

Wished this is on the local board.. make I carry pidgin explain to ur understanding..

[Davian144]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

So, what will you do when you know that now? And if the government supports monopoly efforts, it seems you also need to find out why the government can support monopoly in business cases that only involve a single distributor. Because if other business actors can make their own production there, I think you and the community will definitely have a way out to fight the monopoly efforts of the sole distributor. If we don't fight against it, food prices will always increase and become high every month, because a single distributor can make the prices whatever he wants.

[Text]

The government could consider breaking up monopolies in the sector. The government could take steps to increase competition in the food distribution sector. This could be done by reducing barriers to entry for new businesses and by encouraging foreign competition but it might also lead to job losses if companies cut costs by reducing their workforce.

The government could also provide financial assistance to farmers and food producers to help them reduce their costs. This could include subsidies for inputs such as fertilizer and seed, as well as investments in infrastructure storage facilities, irrigation systems, and transportation to reduce the cost of moving goods from production centers to consumers.

[lionheart78]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

Competition does reduce the price of the service or products of a company, it also makes these company to do their best in terms of service but sadly those who have the money and influence are able to buy the rights to solely capture that market.  Making them the mere force that can manipulate and decide the price they want.

I think the solution for this kind of problem is to find a leader that is just and fair and doesn't tolerate corruption since this kind of problem cannot be solved by any common citizen but the leader that commands the government of a country.

[poodle63]

sometime government intervention towards ensuring the price of goods and foods prominently to be cheap enough is needed.
this is why monopoly from some faction are always a bad thing, competition is always what makes world better, you get better quality with cheaper price.
with monopoly, its always forcing people to buy some obscure, low quality goods with fairly high price just to make one person richer.
but i'd argue that this kind of thing is really hard to solve after all in many countries such problem are structured from the top to the bottom.

[Darker45]

Goods is a very broad term. The factors affecting their prices vary from one to another. There are local, national, and international factors involved in the prices. Some are much easier to address, some are even impossible.

However, what's frustrating or annoying, or even mind-boggling, is that there are factors that seem to be very much within the government's power to address and yet they either do nothing or implement something else.

Many governments operate like the Mafia. I think yours and mine are good examples. Many problems are left unattended because they benefit from it one way or another. They implement programs that are either useless or unsustainable because they get something from it. Or perhaps these problems are effects of the kind business or dealings they have.

[HajiBagi]

The government could consider breaking up monopolies in the sector. The government could take steps to increase competition in the food distribution sector. This could be done by reducing barriers to entry for new businesses and by encouraging foreign competition but it might also lead to job losses if companies cut costs by reducing their workforce.

The government could also provide financial assistance to farmers and food producers to help them reduce their costs. This could include subsidies for inputs such as fertilizer and seed, as well as investments in infrastructure storage facilities, irrigation systems, and transportation to reduce the cost of moving goods from production centers to consumers.

Everyone agrees with the government's choice and the price of things in Nigeria, but did we really expect that Nigeria would change when we looked at the country itself? Or did Nigeria become one of the best nations in the world? I've never witnessed that outcome because, if Nigeria were to change, it would already have changed by now. Food prices are rising daily, and whenever a new administration takes power, its policies will be stricter than those of the outgoing one. If a nation is changing, you can tell right away when a new administration takes office by the way he treats the nation.

Since the beginning of 2023, the price of goods in Nigeria has changed and increased, most notably the price of fuel, which is the most important commodity in every nation and is especially so in Nigeria. Fuel in Nigeria is the root cause of all price increases for goods because, no matter how things are, if the price of fuel remains the same, nothing will change, but if the fuel price decreases, I don't believe the price of goods will follow suit.

[Latviand]

The reason why they probably allow or enable monopoly is because someone who is influential and powerful in the government is allowing that to happen, that's the only explanation why there's a monopoly on that country or any country for that matter. But I do agree with you, we need to find ways to destroy monopolistic capitalism because if that's the norm, we will see our lives governed by few and our freedom restricted.

[retreat]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

Monopoly is not only a problem in Nigeria, but most developing countries feel the same way. Business people who become collectors and accumulate certain products become price manipulators which cause prices to soar higher than they should. The government should be able to act as a regulator that limits business people from manipulating prices, but the problem is that business people have lobbied many parties so that no one disturbs their business. This is the irony of today and there is nothing anyone can do.

[michellee]

But the problem is that the government often plays behind the scenes with distributors in price games, so we often see spikes in the prices of goods and food and shortages of goods and food. They control the price and availability of goods and distribute them to the public.

So it is not surprising that if there is only one distributor for a particular item or even if the distributor has many items, they will dominate the market. This monopoly on goods and prices often makes it difficult for people to buy because prices can rise high or the goods are not available on the market. If the government gives permission to more distributors to provide goods, of course, distributors cannot play with prices and always provide goods. Otherwise, other distributors will try to meet market demand.

And it's true, it's a difficult thing to resolve because there are so many parties involved. Only by having a government that truly works for the people can it solve the problem.

[Ayers]

How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

Competition between businesses always benefits consumers, specifically the people, but the problem is that some products are produced and distributed exclusively, but the government never speaks up or intervenes. That is also happening in my country and I suspect that there are group interests behind it, and the people who benefit from it are most likely the government members or the government itself is behind it all. I see this situation happening in more third world countries because most do not have anti-monopoly laws like other developed countries.

[gunhell16]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

If the government officials there are sensible, I'm sure they will find a way to reduce the price of your basic goods in that country. But if most of the government officials are corrupt, it is also certain that the prices of goods there will increase.

The buyers there will have a hard time with such high prices, and the inflation rates there are also very high, and the subjects of the country are poor for sure. So those who monopolize must have genuine concern for the people of Nigeria. Or you people there also need to be strategic in making income so that you don't lack in your expenses as well.

[davis196]

I have been thinking and trying to analyze what is really causing the high cost of food in Nigeria, I came to realize that monopoly is the major factors, Nigeria government are the enablers. How can one person be the sole major distributor, government should welcome competition in the business sector, every business person should be allowed to produce.

There are three main ways to reduce the price of goods.
1.Reduce money printing from the central bank in order to lower the inflation.
2.Fight monopolies and cartels, which are controlling the market prices.
3.Subsidize the agricultural sector. I'm not a big fan of agricultural subsidies, but most of the countries around the world are going it anyway.
Food prices went thru the roof because of the increased prices of fuel and fertilizers for the farmers. The global climate change also has a negative role. Many regions around the world are suffering from drought, while the fruit and vegetable production of other regions was destroyed by floods and storms.

[dothebeats]

Although supply and demand are the two factors that ultimately influence the standing of the price of goods in each area/country, there is another big factor that we should always be on the lookout and that is individuals who have the money and influence to manipulate the market. Market manipulation happens all the time and everywhere (in fact there is a more thorough discussion about this in a different post if you want more insights about it:https://bitcointalk.org/index.php?topic=5465009.0). Additionally, market manipulation can be done by different individuals or organizations such as big companies, wealthy and influential business individuals, and the government. Naturally, the main reason why they do so is due to the benefits market manipulation gives to them such as a rise in profit and sales. As to how we will be able to reduce the price of goods, the answer might lie on the government as they have a good hold on market manipulation.

[bayu7adi]

You will encounter even more severe difficulties if the government becomes actively involved in such a monopoly. Any form of competition will cease to exist, as the government holds the key to permitting businesses to operate legitimately. Licenses become essential to avoid legal troubles. The government's course of action is flawed as it will result in economic inequality by monopolizing the market.

Monopolies are often associated with the most effective means of securing personal gains. It's also considered ruthless because competition becomes extremely unhealthy. Established businesses will continue to suppress emerging entrepreneurs. Consequently, the price of a product will be controlled by a single entity.

Consider staging a demonstration; I've heard Nigeria is also a democracy.