What makes cost of living still high in Nigeria when dollars loose value.

[Bonny070]

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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[Dr.Bitcoin_Strange]

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.

[Charles-Tim]

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).

[nelson4lov]

~Snipped
 
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.

[Proty]

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

[Makus]

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.

[Stepstowealth]

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.

[Benedictare]

      Until their old goods in the stores are exhausted,the prices of goods will remain the way it is now and our local markets still remain the same,it is the value of imported goods that is equal to our local goods because what value of money they have is what they will use to purchase whatever they need .

   Deflation of goods is a gradual process,let's pray the naira continues to increase and it affects the production of commodities in other for the country to be stable and better,so that citizens will have a better life to live.

[CryptopreneurBrainboss]

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.

Price reduction doesn't just happen over night that's why things are still costly while the dollar rate has dropped. Make I put am for small pikin understanding so everybody fit comprehend. The dollar has fallen but e never stable, traders also know say the dollars go fit rise at anytime because the wey the dollar carry fall no be so e supposed fall. The dollar supposed fall when the economy of the nation is improving but this one wey happen na dictatorship way and in the nearest future the policy wey dem use hold the dollar down no go strong again so obviously the dollar go continue dey go up as e been dey go.

A trader that bought goods when dollars was at ₦1800 and now dollars dey ₦1200 you no go expect am to dey sell at the rate of ₦1200 because na at a lost him dey sell so and there's no guarantee say after him sell finish say dollars go stay stable for am to restock him goods. Dollars self fit go rise to ₦1500 or more. If dollar rise him dun lose in two ways and if he continues like that he'll run out of funds and also out of business.

Las las the price of goods go reduce as dollars stabilized but for the main time we go still dey experience the aftermath of the price of dollars being high and traders buying at that high rate because everybody's want profit in business and they're also looking at the future purchase of goods.

[Briankimp1]

The two main reasons why the cost of living still remains high even though the value of the dollar has reduced is because, We import petrochemical products despite having it in abundance.

Nigeria as a nation do not I repeat do not have the right to refine petrochemical products here in Nigeria because of the ancient pacts signed by our forefathers with the British.

Till we release ourselves from the shackles of modern day slavery like our brothers across borders colonized by the French, We will remain in a constant state of backward ever forward never praying for a savior to come save us.

Another cause for this problem is our mentality as Nigerians, from time in memorial our people have carried this mentality of get rich quick idea, Once products prices increase for whatever reason by the time it reduces our people don’t have the consciousness of going to the original price never minding that they still have profits selling at the original price GREEDY LIFESTYLE, We can do better as a nation and as a people.

[Coyster]

Brainboss dey correct for wetin him talk, we know say Naira don dey appreciate in price against the dollar, but we also know say the thing no happen organically, manipulation and threats na wetin our government use and thus e no look like something wey dey sustainable. Traders no go one take risks as the Naira fit begin fall again at anytime. Having said that, if the Naira dey stable at this low price for sometime, then prices of goods go begin drop, but until then, things go continue like this.

[promise444c5]

A trader that bought goods when dollars was at ₦1800 and now dollars dey ₦1200 you no go expect am to dey sell at the rate of ₦1200 because na at a lost him dey sell so and there's no guarantee say after him sell finish say dollars go stay stable for am to restock him goods. Dollars self fit go rise to ₦1500 or more. If dollar rise him dun lose in two ways and if he continues like that he'll run out of funds and also out of business.

Las las the price of goods go reduce as dollars stabilized but for the main time we go still dey experience the aftermath of the price of dollars being high and traders buying at that high rate because everybody's want profit in business and they're also looking at the future purchase of goods.

Well I think this is a view from one angle , we fit view from and another angle wey be say
Nigerians are too greedy and desperate, fine the low is still fresh but do we think when they discard their high pricr bought goods through selling , they will bring the price down ..... even if they reduce they will still be selling higher compare to how they should be selling  which is why we will be needing the government  to intervene  with the price probably setting a price control  range maybe not now as time should be given  to sell their products
For example
If selling of rice is 150 then the range should  be 150-180 , even if a seller wants  to be greedy  there we be others selling at that 150 forcing  him or her to stay on the right price

[Su-asa]

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.

I don't expect this to be new to you/us at all because this is how things works in Nigeria, if the price of goods are getting high it's takes much longer time before it reduces. The way things increase is more faster than the way it reduces. When you buy goods of 100k and you are selling it the way you could be able to gain 30k from it that's 130k in total, and all of a sudden things changed in a way that the price of good you bought for 100k is now 70k meanwhile you haven't sold the previous goods you bought for 100k. Now I ask you if you will use your religious exemption to sell at your own loss?
If you say no, others will also say no and even when you say yes others will still say no. So it's hard for things to reduce price but it's easy for good to add price. The way naira dragged through the mud early this year, it was something else that's why things are cost the way they are now. It will only take a longer time for thing to reduce price, we only need patient for now,,, as dollar is losing value in naira we hope for a better opportunity opportunities.

[CryptoHeadlineNews]

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

Just like many persons don shoke mouth for this matter, I go follow put mouth say wetin dey still cause the high price of goods wey never go back to normal for the market na as a result of our Naira currency wey its value never dey stable, while the demand for such products still dey high with respect to the corresponding supply in the market. Because one thing certain I have come to realize is that marketers will never want to make any losses by reducing the price of their products when they are not yet certain if the value of dollar go still fall or rise, hence if only government could create favourably policies that stabilize the forex market, then marketers no go get any choice then to play by the rule.

now dollar has been slash down a little the cost of living still remains the same.what is happening to my people.

In regards to this question, I think the crises happening in the North's and parts of the country such as banditary, Boko haram and kidnapping also have a role to play while the prices of goods dey high, because if farmers who normally always grow these economic crops  can no longer farm due to fear of being killed, and as such those crops gets imported into Nigeria, then the prices of it are likely to increase.

[Zanab247]

Some of the raw materials many companies in Nigeria are using to produce all those products people are consuming in Nigeria today be imported to Nigeria with dollars and, the companies that bought all those raw materials when dollar was high will not like to reduce the price of their products until they finish the raw materials to produce all their products and market all before they will follow the current drop of dollar to naira to reduce their price.

Do you think government don't know why price of things are not yet come down in the country, just wait for the dollar price to drop to #500 if the price of goods and services will not come down without government action because, if you reduce your price today base on the drop of dollar and the dollar increase higher tomorrow and for you to increase the price of your products again it will be difficult because, your customers will feel you are cheating them.

[Coyster]

Do you think government don't know why price of things are not yet come down in the country, just wait for the dollar price to drop to #500 if the price of goods and services will not come down without government action

Naira to dollar price no even need to fall to N500 before the price of goods and cost of living go begin drop, e no even dey possible for $1 to be N500 right now. Wetin we just need now na stability of the Naira at a certain price, even if na $1= N1000, the problem wey traders dey get na instability of the Naira and bad government policies wey no dey help our currency, for example if you look at the way the Naira take gain strength against the dollar recently, you go know say na temporary thing and e no go take long before the Naira go begin lose value again.

[Loveday422]

To me why price of things still high is due to the president,he spent money during his election he bribe many and he has not recover his money,even if he recovers his money his ideal can never change he promised to suffer Nigerian since they didn't vote for him legitimately,that where the suffering is coming from ,but he decide to reduce the price of Petro bet me everything will come to normal

[Nangiconference]

Like for me wey dy manage small provision shop, I bin buy indomie when en Dy cost I no go fit sell am with the current price wey I supposed sell cos the thing don reduce money because na lost for me. Anytime I sell the those stocks finish, I go begin sell with the new price sell.
But where I no fit understand this thing be say as I Dy talk now if to say the price of things Dy stagnant whr e Dy e for good but as I Dy talk now some things still Dy add money for market now wey dollar don really depreciate. Na that one Dy confuse me.

[Obari]

Personally I’m not even panicking so hard about the naira to dollar rate and it’s effect in goods, where my problem is lies within the shores of the STANDARD ORGANIZATION OF NIGERIA(SON) and it’s roles as even with the rise of prices of commodities, the values and qualities are also greatly depreciating by the day and yet, no one is doing anything about it but yet; we’re more focused on the rate.

And just as @Dr_strange has already said, which I also agree with him that, these traders maybe at some point, not want to drop the price of their goods because most of them bought it at the high price and you expect them sell below?
That’s not fair and I think we have to out all of these in considerations as well.

[Kliss]

What is reducing the dollar at the moment is Government intervention, of which traders view it as short term solution the government used to suppress high rate of dollar. The major factor that can reduce the dollar rate is Economic performance of our country. If the Economy is doing well it will attract investors which can contribute to the slash in dollar rate, But currently as we all know our economy performance is still not at a right balance. There is other factors like  price of Transportion and price of fuel and diesel which also contributes to price of goods and services and if these are not still going down price of goods can jus fall immediately. Even though the the dollar rate reduces it won't just affect the price of goods immediately because you don't expect a trader who bought goods at high rate to start selling at lower price because dollar has fallen. Traders will be observing the dollar movement and other factors that impact the price of goods in other to have a balance in their business.