The cause of inflation

[Benedictare]

   We no know wetin dey cause inflation,if we ask dem go say na dollar dey rise ,are we spending dollar in country? Y dem go tell us say na dollar, so they beaure de change sef dey complain of shortage,so na wic way we wan go for this country

    Dem say na our local production go make life cheap,say importation cost now wetin dey happen, nobody dey talk again,our oga at the top no see any talk or do,the 36 governors we him invite still no better outcome say him no go allow importation for food but make we grow our local crops.

   The tin be say dem no send the citizens wether we survive or not e no consine dem , because dem no get anything to offer. May God help and save Naija Amen.

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[Olatundespo]

What I think is that this present government are like the old government that has nothing unique to offer. The government should come up with plans to make Nigeria to export more than import. There should be a solution to this. We have minerals and other things needed for the growth and development of our nation. Many countries can depend on our goods and services, but we are not producing enough, yet discouraging foreign investors in the country. Can you see how electricity is in Nigeria, our government is not different in doing. We are just not getting anything right.

For dis Naija mata wey dey ground, pipo dey vex well well about di export and import policy. I get some ideas wey dey my mind and I fit yarn am for dis cryptocurrency forum wey no get any kain restrictions.As we sabi, Naija dey always depend on oil for money matter, but e get as we fit spread our hand enta other sectors like farming, manufacturing, and technology. E go reduce our eye wey dey oil and help us build beta economy wey go last.
If we fix our road, light, and oda infrastructures well, e go bring foreign investors come our side, make trade easy, and ginger economic action. Government fit also drop incentives wey go make investors chook eye for di areas wey need development well well.
But o, e dey important make we shine eye wella for transparency, accountability, and to follow law well. Na so we go fit create environment wey go help development wella and make investors gree put money for Naija.

[adultcrypto]

Printing money is not the only factor that causes inflation. There are many other factors that causes that and many countries of the world have experienced inflation at one point or the other. In simple terms, what causes inflation include production cost, fiscal policy and demand/supply balance. In Nigeria, there is problem in all the factors that causes inflation, that is why we are here today. The floating of the Naira is just one of it, what triggered what is happening now is actually the borrowing and excess printing of currency that happened during the last administration of Mohammadu Buhari, but this does not mean it is the only factor responsible for it.

The frustrating part of it is that there is no hope in sight because Nigeria is gradually heading to a failed state as a result of the failure of the present administration to arrest the worsening economy.

[Alphakilo]

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

The issue of inflation and currency devaluation is complex, reflecting systemic challenges beyond just the current government. While their policies and decisions play a part, it is not something that can be reduced to a single reason or entity. It is a result of policies being made, fiscal discipline being (or not being) exercised, and of global trends of the global economy. Working together to developing sustainable economic policies, would be the best way to go about not just avoiding, but overcoming significant economic challenges in today’s interconnected world.

[odunybiz]

What I think is that this present government are like the old government that has nothing unique to offer. The government should come up with plans to make Nigeria to export more than import. There should be a solution to this. We have minerals and other things needed for the growth and development of our nation. Many countries can depend on our goods and services, but we are not producing enough, yet discouraging foreign investors in the country. Can you see how electricity is in Nigeria, our government is not different in doing. We are just not getting anything right.

If they can't solve the problem..., why are they adding to it. More money have been printing over the years by the past government and things never be as add as this. Dollar never appreciate on daily basis but in this regime, we always see increase everyday. I don't really see over printing as the cause of the problem. What I see are:
👉 Mismanagement of fund
👉👉 Failure to diversify. Why crude oil always. Agriculture can save us from this mess if our government try it out.

[Makus]

The funny thing is that the government sef dem know these things because you no fit tell me say a whole economist and financial head of the country like Nigeria no suppose know how money value dey work ? But instead they choose to make it beneficial to themselves and forget about we wey be the masses and leave the country to be in a situation that has gone beyond repair and I know this is even the beginning because we are getting to a even more worse state than this.

Why you say the situation don go beyond repair? As it stands if them put their head for ground think about the country, them Dem go surly come up with good idea. I no know why them just abandoned the country while them dey embezzle the country wattin  o good. Our import rate too much it's hight time we start manufacturing. But everything na their hand e dey, if them start to repair our refineries them build some manufacturing companies, after all we get enough raw materials wey need processing, if we do all these things our currency dey likely to get small value pass as e be now.

[cocadalcan]

Blaming a specific government or administration for all economic situation glosses over the complexities of the issue. Economic challenges from a combination of historical policies, global economic forces and domestic decisions. Its consider a wide range of factors and adopt comprehensive and nuanced approaches to address economic issues effectively. Inflation and currency devaluation requires multifaceted strategies including prudent fiscal and monetary policies structural reforms to enhance productivity and competitiveness investment in infrastructure and human capital and fostering a conducive business environment for sustainable growth.

[Benedictare]

   The main cause of inflation in Nigeria is the devaluation of Naira because it lead to higher cost of importation fees that spreads through the economy of the nation which will now affects production cost,demand and supply, because of this action,it increases machinery cost, fertilizer and other farming materials for farmers and then increase in food price and other commodities.

   Inflation also can happen when there is a rise in price because of increase in production cost like raw materials  and  salaries  also when there is a hike in demand and services can lead to inflation since consumer will want to pay more for that products.

   Inflation is very high because of the labor market practicing strict economy in 2021and 2022 hard inflation was high at the ratio of unemployment to job vacancies was at the high side.

[7juju]

Many of us thinks the rise of inflation and the weakness of the naira currency is because of the new government we have in the country.  Before now a state governor was complaining about how the past government was printing of money, and many people thought it was just propaganda which they took it very lightly.  The hardships and the high inflation rate we are seeing today is as a result of printing money that has been taking place longtime ago.

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Op I do not really agree with you, since the naira redesign cash has been scarce like never before. I do not think is because of the naira printing. To me I have seen it in two areas that our government has caused:
.1 failure to revamp the refineries: if the refineries are functional and we are able to export. I think the cost of petrol which has caused untold hardship will drop and our GDP will witness growth since we can buy without the dollar rate and employment has been created for the teeming youths.
2. Import duties: I live close to A PORT AUTHORITY (ONNE PORTS AUTHORITY). A trunk driver told me the Nigerian customs charge per container the sum of #10m. Ask yourself this question, where are those funds going, when they can make 1bn per day yet nothing seem to work in the economy. Now if you are the importer, how much can you sell those goods you paid #10m for, of a truth the goods will be so expensive. Assuming I have the poweror in government these are the areas I would have tackle first.

The removal of the fuel subsidy was the origin of all the problem we are facing in this country. The president made a big mistake by announcing the removal of fuel subsidy without having a proper planning on how the country would cushion the aftermath of the subsidy removal. Things were not this though when fuel subsidy was still in place. If the government can quickly fix the issue of high cost of transportation, things will go back to normal in our economy.

[Bitco55]

Took me till I got into Economics class to realize this.

In Economics, there are 3 views of inflation and causes which also make up the 3 definitions. These views are ;

The layman's understanding - it is the general rise in the price of goods and services in an economy.

The monetarist view- a phenomenon where there is an increase in the supply of money, making more money to chase fewer goods.

The Economics view- a situation where aggregate demand is 4unning ahead of aggregate supply. I.e more people are looking for what to eat and are demanding meanwhile, little amount of people are manufacturing and supplying goods into the market.

Now you may think, that the cause of the devaluation of the naira currency is just the cause of distortion in the monetary sector of the country. If that was true, things would have gotten better by now. A lot of factors have come together to devalue the Nigerian currency. And there are all bits of these 3 views. Serious monetary and even fiscal policies would be able to save us now... But the government just seems to be sleeping on our matter like we need to go into hell and make a deal with the devil before our country would be saved.

[Antotena]

Many of us thinks the rise of inflation and the weakness of the naira currency is because of the new government we have in the country.  Before now a state governor was complaining about how the past government was printing of money, and many people thought it was just propaganda which they took it very lightly.  The hardships and the high inflation rate we are seeing today is as a result of printing money that has been taking place longtime ago.

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Printing of Naira wasn't necessary and even it was, they didn't pay back the central bank that money and it's the reason why we are here suffering today for the inappropriation, the Nigerian politicians are very wicked and lack human sympathy else why would you print money and then squandered the money meant for public use.

The senate Akpabio.was questioning the last senate president about how 26T naira was use and he said he doesn't have that record, it's a shame that the world is watching these men yet they lied on public offices as if people are not watching them. One of them stood up and said the senate was meant to Approve and not to investigate how funds were spent. This senators are heatless and it pains me that all of them are the same, it's only political party that differentiate them; APC, PDP, LP and NNPP are all the same people running from one party to another, Nigeria is far from been great again.

[Davidson500]

Why we always experience inflation in our country here Nigeria is because of bad and corrupt government we have here.
Our government has failed to value it own currency which is resulting to high cost of commodity, goods and other things in the country, this has resulted in elevated costs for machinery, fertilizers, and other inputs for farmers, which can result in higher food prices.
Importation of goods and services, exchange rate, wages, interest rate, pump price of petrol, and unemployment rate are significant determinants of inflation in Nigeria in the long run, which the government can still do something about but choose to over look it because it's not affecting them or there generation in anyway making the poor masses go through pains and hardship.

[Mr.suevie]

Many of us thinks the rise of inflation and the weakness of the naira currency is because of the new government we have in the country.  Before now a state governor was complaining about how the past government was printing of money, and many people thought it was just propaganda which they took it very lightly.  The hardships and the high inflation rate we are seeing today is as a result of printing money that has been taking place longtime ago.

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Oga the reason why many people dey blame the new government na because dem no dey actually do things to solve the issues, it okay that the deed has already been done by previous administration but wasn't that the main purpose of the people actually electing you? If we knew that they would be this incompetent then no Nigerian would have actually voted them in power well I no blame them as them  actually buy their way to the top nai make .

[CryptopreneurBrainboss]

Many of us thinks the rise of inflation and the weakness of the naira currency is because of the new government we have in the country.  Before now a state governor was complaining about how the past government was printing of money, and many people thought it was just propaganda which they took it very lightly.  The hardships and the high inflation rate we are seeing today is as a result of printing money that has been taking place longtime ago.

You dun talk am finish, an economy of a country no go just collapse, na from previous bad decision wey the past government dem take and the follow up bad decision wey the current government dey take na wetin the cause an economy to collapse. But sha no matter how bad the pass government been be if the present government sabi wetin dem dey do dem go fit keep the economy moving even if the economy no strong e no go collapse as Nigeria economic dey collapse so, but because dem no get clue of anything to do and dem no dey do anything self na wetin make the economy dey go on a free fall.

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Lack of production follow, lack of utilization of our national resource to boost the economy of the nation follow too. No be just one thing dey cause this economical disaster wey we dey face so. If you dey observe eh no sector ran by the government dey work. We get clueless leaders and until we get our electoral process right we go continue dey face problems like this. Make we elect leaders wey get vision for the country, make dem give us manifesto on wetin dem go do differently, make we dey hold mandatory debate and person wey convinced us get our votes and no be this party something wey we dey vote so dey deceive ourselves.

[Y3shot]

You dun talk am finish, an economy of a country no go just collapse, na from previous bad decision wey the past government dem take and the follow up bad decision wey the current government dey take na wetin the cause an economy to collapse. But sha no matter how bad the pass government been be if the present government sabi wetin dem dey do dem go fit keep the economy moving even if the economy no strong e no go collapse as Nigeria economic dey collapse so, but because dem no get clue of anything to do and dem no dey do anything self na wetin make the economy dey go on a free fall.

This what I am saying, this government no get any plan, that is why you go see say they are not making anything effort to make things better. It is as if governance is too heavy for them and everything is sinking in their hands, this government don't even care to do anything for the masses, they never had plans to work. What they are concerned is with is to be in power thst is why they can do anything to retain in power as much as bribing the electoral commission to just do what they like.

[laijsica]

E get some tins wey dem do for di past like printing money wey fit affect di economy long term. Blaming just one government for all di wahala we dey face fit too simple. Di relationship between government policies, how money strong, and inflation, e dey complex and different factors fit influence am over time. E important to look at plenty economic factors, like how government dey spend money, monetary policies, how di global market dey behave, and di problems wey dey inside di economy when we dey analyze inflation and how money strong.

[JMBitcointernational]

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Well spoken op the printing of new naira notes by the past administration really facilitated on this inflation because it reduces the value of naira as the day goes by.

Nigeria economy is built around the oil sector which the price of dollar is one the major factors that influence its rate. the current administration might be fighting secretly to reduce this economic crisis but i will advice them look properly at other sectors of the economy like the agricultural sectors, going back to our cocoa plantation ,coal mining ,limestone and so  many more because Nigeria is actually blessed with so many natural resources .

in addition ,another way to reduce this economic crisis is to stop borrowing, and reduce the rate of importation, build refineries in the country instead of exporting crude oils and also going back to buy the finished products(fuel,diesel,gas) because this will also help to reduce illegal refining of fuels which also cause environmental hazard.

lastly, they should also reduce some of the unnecessary allowances giving to politicians and use the money to build social infrastructures ,so that nigerians will have the need to enjoy social amenities .

[Brainiac01]

If we dey talk economics wey we read for school, yes printing of new currency fit make a country begin withness inflation if not well managed because e mean say more money go dey the system chasing few goods or willing to buy at any price. But for countries wey stand well, the consequences of printing currency no dey hammer the currency down.

Therefore, printing of Naira no be the reason wey our Naira dey crash. Our own case be say we no get any economic indices wey go fit support economic growth. We only depend on one natural resources out of plenty of them scattered across Nigerian states. Na oil wey Nigeria dey export and not even in refined state but in crude wey be say we no dey even get the full benefits of am because if we refine here other byproducts go from the crude go benefit us and we go still export those byproducts with refined petroleum/oil.

The environment for businesses to grow no dey, no electricity, bad road network for transportation of goods, insecurity no let farmers effort show, corruption no allow proper utilisation of money meant for project development.

Which one person go talk? So the issue na simple and direct thing. Fortify production and begin export things then you go see less dependence on foreign exchange and products and the economy go balance then na Naira go use him hand normalize.

But when corruption put government wey no want do the right thing but only seeking ego and to pay back political cronies, omo everybody get family for naija and one way or the other, the evil that men do live with them mbok. Hussle oo 

It might not be the main reason but it's a very strong reason (if not the major reason). Even if we fix the ones, you mentioned above. If the printing doesn't stop, we'll still be having similar issue. This is from my research though

[Pi-network314159]

We have talked about this before and I also concluded that printing of more money in deference denomination and also in new currences is this cause of the inflation. Let me break it down according to my understanding, the value of any goods or commodity is scarcity. When anything is relatively scarce it now becomes expensive and also valuable but when it's everywhere it becomes much and no longer valuable. Just as some shitcoin or altcoin may have a total number of 100billion is supply and 80bilion in circulation, that is to tell you that it will be difficult for such coin to be worth anything because 1 of it may find it very hard to hit $1.

For example if  #1000 was not created, our highest curency would have ended in #500. And other lesser value like #5 and #10 will be appreciated. But due to the printing of #1000 note has made other smaller currences not useful.

Another one is demand and supply. The demand is high and the supply is low. There is drastic increase in demand of commodity but we lack production. These production is difficult as a result of the inability of people to afford the production equipment. Now we talk about farming most people love farming but do t have the capital to enhance there farming business. Due to this most rice produces in Nigeria are not that good because the tools needed to make rice farming lucrative is not there, so they do it there own way.

Thee is less exportation and high importation. Nigeria are more of consumers than producers and when you don't produce anything as a county but always consume, you'll end up enslaving yourself to people that sell goods to you. because you only depend on them for feeding. and if they can't produce anymore you'll die of hungry and you must adapt to any price they give to you. Because you depend on them. So I think this points are the reasons why we suffer in this country.

[EluguHcman]

Many of us thinks the rise of inflation and the weakness of the naira currency is because of the new government we have in the country.  Before now a state governor was complaining about how the past government was printing of money, and many people thought it was just propaganda which they took it very lightly.  The hardships and the high inflation rate we are seeing today is as a result of printing money that has been taking place longtime ago.

The cause of the inflation is nothing but as a result of printing money that is naira is losing value constantly everyday. The economy has never been bad like this, we are facing the consequences of wrong economy doings.

Your point could only be one of the reasons why the naira looses its value including the falling of national economy.
Just as you said that the past governments has been printing excessive monies, mark the word "past governments", if by so doing as the cause, does it mean governments after governments increases the number of monies they prints? Because as the case maybe, the naira looses its values and the economy rate falls by governments after governments.

Let's get this out on a buttress, does it mean in just few months that Tinubu has just been on seat he has printed over what a kind of the past government of Buhari has printed in over 8years of his tenure? Because in this short while of Tinubu's government, the cost of living has multiplied in folds and we are yet to experience more as time goes
I am not in dispute that this could be one of the reasons but let's not relax blames specifically out of the money printing cases.

I personally feel this is also concerned about the failure of our federal government to incorporate with the foreign economy sectors.
Let's also look at the monopoly governances whereas only a specific investor is permitted for production depriving other investors to enable the industrial system being competitive to produce quality and affordable products within the country instead we either relies on one investors products or importation of foreign products.
Even at the foreign trades of importation and exportations seems difficult for our local investors considering the border conditions where being shutsdown while some of our local importers are being deprived from letting their imported materials in and even if succeeded bringing them in to the country, the importation charges would be so high that the Investors would want to cover their capitals and also make incomes by setting their products on a higher purchase.

Why can't we have standard infrastructures to attract foreigners to partner here with us or classes of infrastructures to attract foreigners with greeners pastures within our localities?

Imagine us with substantial educational and medical infrastructures and the lack of tourism centres, these are what the government can structure and installs in this country to attract economy growths to our societies and by so, our currency would be valuable.

In essence the government is only being selfish while in power of governing authorities.