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Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate - Business (5) - Nairaland

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Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by pythonkid(m): 11:45am On Feb 23, 2016
EnterPRO:
the one I don't understand is pure water. why should price of water double overnight? even in Lagos.

are we importing that one too?
Everything has to go up because it's affecting everybody

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by PAnaceA7(m): 11:45am On Feb 23, 2016
Bevista:
I don't think it's completely out of place for folks to increase the price of their goods and services, even though there is no direct FX input.
---
The reality is that these business men/women patronize other goods/services which have increased in prices due to dollar effect. As a result, they have to re-price their items so they can generate enough income to meet the rising price of other items. For instance, mama Nkechi (who sells palm oil or pure water) might need to buy Sardine which has increased from N150 - N200, or replace lost phone which has increased from N20k - N30k, or buy her son a laptop which has increased from N70k - N120k.
---
A high exchange rate usually gives rise to (imported) inflation. Should the CBN officially devalues the Naira and fuel price increases, then the inflation will become official. Everything in the market will respond instantaneously with price increase. The REAL value of your salaries will become less since it can now only buy a fraction of what it used to buy.
---
Strike action looming from NLC demanding wage increase. Employers will resist, complaining that rising wage will add to the already rising cost of business. SMH!

U are making sense broda

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by fash6(m): 11:47am On Feb 23, 2016
My broda,4 ogba now its 150,nt funi @ all,frm 70naira,som 60,jst migrated to 150,may God hep us.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by kogirodent: 11:48am On Feb 23, 2016
Obiagelli:


This one na pure greed. A result of a single comodity dependant nation.
hahahahahaha, madam, so you too no understand how this thing de work? I am shocked o, honestly.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by chrisnero(m): 11:50am On Feb 23, 2016
Mr Poster! Stop complaining, You want the old woman to still maintain the Old price while the prices of other Commodities have increase. She doesn't wear oil nor pay drugs with oil. She need to increase price because she need to meet the increasing price of other iimported products which she needs. Tell me how will a worker on 20K per month cope with dis diwndling economy. He\she needs to pay rent,pay bills,with other tins.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by kogirodent: 11:53am On Feb 23, 2016
rushman003:
Something i was discussing with my friend yesterday! He said dollar rise is a blessing in disguise to Nigerians and i made him understand we are not ready for that yet! Reason why BUBU said he will not devalue Naira because we will surely misuse the opportunity. Imagine everything in market has gone up even garri which one of the foreign tool that i don't know about did they use in making garri! Nigerians we are the architect of our own problem. BUBU should just try and reduce poverty by providing a conducive business environment and creating job opportunities, probably some of us will receive sense so that Nigeria will grow. #IStandWithBubu
my brother, i recomend Comprehensive Ecnonomics for Senior Secondary Schools in Nigeria for you. E go help u reason well well especially reasoning beyong politics. No vex o
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by kogirodent: 11:54am On Feb 23, 2016
akinloluwao:
Even car park has increased. I wanted to park somewhere on Saturday and ibwas told that parking is now 700 again 500, I asked why, they said because dollar has increased. I was like, whatbis going on here. I wonder If they are hiring expatriates as their attendants. I raise my yansh for naija people
your nyash de smell. Runs out of the thread
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by FTBOY: 11:57am On Feb 23, 2016
even toto sef don add price sad
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by honeric01(m): 11:57am On Feb 23, 2016
uzolexis:

pls Nigeria imports virtually everything....down to toothpick. rice is imported,clothes are imported from china, sardine,phones etc,are you trying to say pple in the rural areas don't need these things
there is no grammer in this,this is simply economics multiplier effect and any country heavily dependent on import will experience such in a similar situation.

You haven't said what they buy in the rural areas that's connected to dollars.

Sardine? Wetin concern mama for village with sardine when there is freshly smoked fish in abundance? I don't like blank statement, please be specific?

Wet in concern papa Abdul with toothpick when there is palm tree around?

You mean they just realised they had no phone before and decided to buy one now that dollar is scarce? Tell me something else.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Godson1996: 11:58am On Feb 23, 2016
Her profit can not buy other things she needs that are likely imported. Forex rate affects every aspect of our society since we are import dependent for most of our needs. Don't blame her.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by goodgate: 11:59am On Feb 23, 2016
Smellymouth:
Hhmmmm
Na wa oo
Naija don dey turn to Egypt during the time of famine in the bible
Still Billionaires will be made in this season. Just believe,pray and work hard.

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by honeric01(m): 12:00pm On Feb 23, 2016
tobiasbeecher:

If you read what i wrote you will see the example i gave. That's why i brought the concept of multiplier effect. Read and understand

Bro what you wrote is not in tendem with what is actually happening in the rural area, you can't claim the phone they buy once in green moon is the reason they increased the price of tomatoes in the market.

What exactly do they spend dollars on when planting or harvesting tomatoes, yam or palm oil in the village?
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Godson1996: 12:01pm On Feb 23, 2016
honeric01:


You haven't said what they buy in the rural areas that's connected to dollars.

Sardine? Wetin concern mama for village with sardine when there is freshly smoked fish in abundance? I don't like blank statement, please be specific?

Wet in concern papa Abdul with toothpick when there is palm tree around?

You mean they just realised they had no phone before and decided to buy one now that dollar is scarce? Tell me something else.

The rural people buy milk, rice, tin tomatoes, slippers, shoes, etc some of these products are manufactured here with imported raw materials. Price must definitely be affected one way or the other.

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by ifekon: 12:01pm On Feb 23, 2016
Don't you know that after selling her palm oil, she will still use the money on other things that the dollar had affected?
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by toprealman: 12:02pm On Feb 23, 2016
Went for amendment at the tailors and when he told me the cost, I asked if it was because of the dollar- naira wahala, he said yes....that at least I know what is happening. Laugh no gree me laugh. Dollar kwa?
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by MissingBudget: 12:03pm On Feb 23, 2016
It's called multiplier effects. When they sell at the old price, they won't be able to buy some things they used to buy because the prices of the things must have increased.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Gheritage(m): 12:03pm On Feb 23, 2016
We need more companies, more jobs, inventions, lets start manufacturing goods for ourselves, let's cob importation we too can be great
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Godson1996: 12:04pm On Feb 23, 2016
braine:
Same here. Bag of pure water is now N150 from N80, thats over 90% increase! Do we import water too?

Machinery for the water are imported, even the raw materials for the production, water treatment, eat all depends on dollars.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by fF01(m): 12:04pm On Feb 23, 2016
Clone2020:
You call it greed and I call it capitalism.
nah! its called Opportunism not Capitalism, guess u skipped ur Eco class.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by uzolexis(f): 12:04pm On Feb 23, 2016
honeric01:


You haven't said what they buy in the rural areas that's connected to dollars.

Sardine? Wetin concern mama for village with sardine when there is freshly smoked fish in abundance? I don't like blank statement, please be specific?

Wet in concern papa Abdul with toothpick when there is palm tree around?

You mean they just realised they had no phone before and decided to buy one now that dollar is scarce? Tell me something else.

Stop acting ignorant please, is it only food stuff pple in the rural areas consume? Even the food stuff sef is imported, you think they dont eat sardine or even the basic rice. They dont use toothpick as well My God, pls which rural area is that that doesn't have access to these basic things. footwears, clothes are all essential and are mostly imported.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by honeric01(m): 12:05pm On Feb 23, 2016
Godson1996:


The rural people buy milk, rice, tin tomatoes, slippers, shoes, etc some of these products are manufactured here with imported raw materials. Price must definitely be affected one way or the other.

Abeg Jor.. You mean they now buy foreign milk, rice, tin tomatoes, slippers all of a sudden? What happened to where they source it locally before?

You are saying rural area dweller ignore the tomatoes in abundance for foreign tin tomatoes?

Excuses here and there.. All the while I lived in the rural area, 95% of what was used in cooking were locally sourced/produced so save me the foreign goods excuse.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by firerizedman: 12:05pm On Feb 23, 2016
afroniger:
Biko, since Nigerians can't seem to live without dollars, why don't we scrap the naira and kukuma be spending dollars na?! Because this insatiable appetite and demand for dollar as if our lives depend on it is the primary cause of the loss of the naira value. I can't shout.
Thank you. dollar here, dollar there. Infact i don't pity anybody, even myself. We need these naira failure. To me oo, NIGERIAN ECONOMY IS HEALTHY, if you produce there is market, shikena. Lets look inward and forget this dollar-menance.

2 Likes

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by naijathings(m): 12:07pm On Feb 23, 2016
Bevista:
I don't think it's completely out of place for folks to increase the price of their goods and services, even though there is no direct FX input.
---
The reality is that these business men/women patronize other goods/services which have increased in prices due to dollar effect. As a result, they have to re-price their items so they can generate enough income to meet the rising price of other items. For instance, mama Nkechi (who sells palm oil or pure water) might need to buy Sardine which has increased from N150 - N200, or replace lost phone which has increased from N20k - N30k, or buy her son a laptop which has increased from N70k - N120k.
---
A high exchange rate usually gives rise to (imported) inflation. Should the CBN officially devalues the Naira and fuel price increases, then the inflation will become official. Everything in the market will respond instantaneously with price increase. The REAL value of your salaries will become less since it can now only buy a fraction of what it used to buy.
---
Strike action looming from NLC demanding wage increase. Employers will resist, complaining that rising wage will add to the already rising cost of business. SMH!

exactly what I was trying to explain to some angry fellow at a shop last night

the crazy price of the dollar has a RIPPLE EFFECT on everything.

if u have been on a salary of 5,000 naira since January 2015 when d dollar was still around 170, it is logical that you demand a raise because the 5,000 can no longer support you when the dollar is at 400. same thing goes for the oil seller and the garri seller cos d price of d dollar is affecting their daily lives
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by seunpayne(m): 12:08pm On Feb 23, 2016
I don't think the hike in prices is an actual problem. I'm more interested in the title of the topic which is actually hitting the nail. Its fine to push prices up to balance out in business. What makes no sense is the fact that ALL OUR BUSINESS seem to be affected. No one is actually making any plan to seize the market. I will give three examples.

Food, Clothing and Transportation: We import some food and we produce some at home. I would have expected the indigenous producers to take advantage of the rise in prices to flood the market with their wares and maintain a lower price point. Granted they have to import the machine used to bla bla bla but being honest which company just started in the last two months? Chances are they already imported all they needed before the price hike. Its plain blindness to still be competing at this level. if a foreign product cost N100 after the hike and an indigenous product cost N100 as well (even though it might cost less to produce) most people will go for the foreign. It is more popular after all. A prudent business man will penetrate the market by either dropping his prices by a margin or at least maintaining the previous price point. Same goes for clothes. Now most car dealership bought the cars on display at least 6 months ago. Now if I have 100 cars and I plan on making N200k off each. On average I sell at least 5 cars every quarter my expected profit is N1 million. Now if I drop my prices by 100k or even maintain them while everyone else shoots to a N300k profit margin because of dollars (that hasn't actually affected them) then I automatically become cheaper and will sell more in a short time. Regain my initial investment and make more money in a shorter time. Now someone will see this as a loss in the long run but it doesn't have to be the case. Making N100k off every car and selling 10 cars every quarter is a much better deal than the previous as you will get more customers because you are cheaper. Its common sense really.

Disclaimer: This analysis is based on common sense and my opinions alone. I cannot confirm or deny the validity or practicability of my analysis. I "feel" it is a prudent path but in no way expect that it will be seen that way or accepted to be correct.

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by honeric01(m): 12:10pm On Feb 23, 2016
uzolexis:


Stop acting ignorant please, is it only food stuff pple in the rural areas consume? Even the food stuff sef is imported, you think they dont eat sardine or even the basic rice. They dont use toothpick as well My God, pls which rural area is that that doesn't have access to these basic things. footwears, clothes are all essential and are mostly imported.

Maybe you think I live in heaven.

Wet in concern baba Segun for ikere with toothpick when he can use broom locally sourced? Which foreign foods do they eat in the rural area apart from rice? Give me a list of an average food eaten in rural area that is sourced abroad.

Abet drop the sardine example, sucks.. Wet in concern agbero with overload?

You mean the same abokis eating bread and eggs, kunu and rice, yam and rice here in Lagos have suddenly started eating sardine and foreign chips because of dollars in the rural area?

Keep the excuse rolling.. Greed and some Nigerians are like bread and butter.

If dollar was actually affecting the mama mentioned by the OP, why then did she say "dem say dollar don high, so I must add money"?

3 Likes

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by AK481(m): 12:14pm On Feb 23, 2016
dominique:
A lot of stores are taking advantage of the the exchange rate to hike the price of items they had in stock months before the dollars rise



I don't want to believe that this really happened.
if they sell old stock finish with old dollar price,how will they buy a new one.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by flashope(m): 12:16pm On Feb 23, 2016
Refrencing my leyman knowledge about economics I dont think dollar should affect price of palm oil. I see this as exploitation . People are taking adavantage of this situation. We are our problem ;the moment we all stop being greedy that is when we can easily get a better Nigeria

1 Like

Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by braine(m): 12:21pm On Feb 23, 2016
Godson1996:


Machinery for the water are imported, even the raw materials for the production, water treatment, eat all depends on dollars.
So they import new "machinery" and "raw materials" when ever they want to put water in bags. I see.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Bevista: 12:22pm On Feb 23, 2016
naijathings:
If u have been on a salary of 5,000 naira since January 2015 when d dollar was still around 170, it is logical that you demand a raise because the 5,000 can no longer support you when the dollar is at 400. same thing goes for the oil seller and the garri seller cos d price of d dollar is affecting their daily lives
If the company you work for is already experiencing a challenging business environment due to the rising cost of other factor inputs, how do you think they will react to your demands for wage increase?
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by Yehman(m): 12:23pm On Feb 23, 2016
GurlFriend:
A blog reader sent us this mail and picture





http://www.lailasblog.com/2016/02/greedy-nigerians-cashing-in-on-rising.html
That's crazy and one way thinking. How good is your economics? Oga/madam, the hyper-inflation is now having a snow ball effect on every other items. So u don't know that the old woman also have her own needs to meet up with. If she doesn't increase the price of her palm oil, where will she get money to top up her expenditures on imported goods.
Re: Greedy Nigerians Cashing In On The Rising Dollar Exchange Rate by BobUg28(m): 12:25pm On Feb 23, 2016
ebig21:
Look at everyone saying that they dont know how dollars affect our local production. Nigeria imports virtually everything. So when those goods imported prices soar, it affect the local producers. Since they will buy clothes,they will buy cars. They will build houses. They will buy electrical appliances. They will run their families.so they have to increase theirs to meet the new inflation


This got me honestly, and that's the only thing people fail to understand. The depreciation in the foreign reserve with inevitably affect our local produce. It's the Foreign Reserve that determines the strength of our Naira so when it's not strong enough other things will definitely spill locally.

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