I believe we are all aware of the current wave of inflation or price increase of basic necessities.
I have come to the observation of excess price increase among Nigerians that's not in tandem with input material increases. I will give some personal examples to buttress my point.
Example One - We all know petrol has gone up from around N170 to around N220 per litre on the average. Now that's a 29.4% Increase in basic input for transporters, but a motorcycle ride of N50 is now N100. That's an 100% increase and not in sync with petrol price increase.

Example Two - I buy USB cable once in a while and we all know these thing are imported so depend on forex exchange rate. The issue is a cable of N250 is now N800 and in some instances even lower in quality.
That's a 320% Increase in response to a less than 50% increase in forex rate.

Example Three - Detergent of 190 grams going for N110 is now 160 gram and going for around N180. When you check well the overall increase doesn't correspond to the forex rate increase which affects basic cost of imported raw materials.

Example Four - Cow Beef. Yes, cow beef.
We all know most cows graze on grass and their transportation cost increases are marginal. But then cow sellers have adjusted as though they are feeding on human food that has doubled in prices. Now that's a little bit out of place if you ask me.

Price increase is necessary to keep business afloat when input cost increases but then not in a greedy manner that will come back to hurt too many people.
At this point, I like to call upon consumer protection and market regulation agencies to act. They aren't created to complain about DSTV and MTN price increases alone like South African businesses are the only foreign investments in Nigeria

Thank you.

Sad and pathetic

We are our own problems.

This inflation is worldwide and everyone feels the difference in their pockets, whether it’s less savings, cutting expenses, going without. . . . .. it is what it is

It's quite bad and disheartening. We didn't foresee all these unfavourable circumstances a few years ago. We've never had it this bad before. And the worst part is that the consuming commoners are the ones who bear the brunt as retailers will always find a way to greedily adjust.

RepoMan007:

Example One - We all know petrol has gone up from around N170 to around N220 per litre on the average. Now that's a 29.4% Increase in basic input for transporters, but a motorcycle ride of N50 is now N100. That's an 100% increase and not in sync with petrol price increase.

Not exactly, bro. Petrol is not the only input. From a business perspective, you have to consider the cost of bikes (for new riders), cost of maintenance and repairs (for older bikes), cost of 'engine oil,' and spare parts. The rider is human too, consider human capital, his rent, daily food expense required to ride properly, and tax. All these have increased in tandem with the rising inflation. The fuel is not the primary input here but the human capital.

Apply this explanation to the rest.

You also have to understand that inflation is driven by pressures on the demand and supply side of the economy. Demand-driven is the most common.

MMotimo:
This inflation is worldwide and everyone feels the difference in their pockets, whether it’s less savings, cutting expenses, going without. . . . .. it is what it is

Said who?

And naira is exchanged at $1/680?

Stop that already.

APC have destroyed Nigeria and want to kill everyone.

APC is deliberately destroying Nigeria..

This is the last opportunity Nigerians have to live or die finish.

Say no to APC.

Acidosis:


Not exactly, bro. Petrol is not the only input. From a business perspective, you have to consider the cost of bikes (for new riders), cost of maintenance and repairs (for older bikes), cost of 'engine oil,' and spare parts. The rider is human too, consider human capital, his rent, daily food expense required to ride properly, and tax. All these have increased in tandem with the rising inflation. The fuel is not the primary input here but the human capital.

Apply this explanation to the rest.

You also have to understand that inflation is driven by pressures on the demand and supply side of the economy. Demand-driven is the most common.

I understand your point and must admit it is valid but the difference between 29% and 100% increases cannot be explained entirely with those factors.

Na we dey do ourself for this country. We are our own enemy.

Inflation is everywhere.

As for Nigeria, we are our own problem.
We come here and lament and it ends there.
An agent will make monetary offer to us to vote for his candidate, we forget about the long term and accept the money and then another set of lamentation.
Do you think the money given to you is freebie?

It will be recouped 10 times or more.

We then remember to write essay about how bad the govt is.

It's only in Nigeria that poverty makes people very docile.
Complaining always.

Men only when it comes to insulting and denegerating their women.

Those who don't run a business forming an opinion on how those who run businesses should charge.

jmoore:
Those who don't run a business forming an opinion on how those who run businesses should charge.

That isn't the case here. Some are down to middlemen. Like that of detergent. The producers reduced from ,190g to 160g and maintained the price but middlemen jerked up prices still.

descarado:
Inflation is everywhere.

As for Nigeria, we are our own problem.
We come here and lament and it ends there.
An agent will make monetary offer to us to vote for his candidate, we forget about the long term and accept the money and then another set of lamentation.
Do you think the money given to you is freebie?

It will be recouped 10 times or more.

We then remember to write essay about how bad the govt is.

It's only in Nigeria that poverty makes people very docile.
Complaining always.

Men only when it comes to insulting and denegerating their women.

You last paragraph makes you an Ode. Big Ode.
Mumu

RepoMan007:
I believe we are all aware of the current wave of inflation or price increase of basic necessities.
I have come to the observation of excess price increase among Nigerians that's not in tandem with input material increases. I will give some personal examples to buttress my point.
Example One - We all know petrol has gone up from around N170 to around N220 per litre on the average. Now that's a 29.4% Increase in basic input for transporters, but a motorcycle ride of N50 is now N100. That's an 100% increase and not in sync with petrol price increase.

Example Two - I buy USB cable once in a while and we all know these thing are imported so depend on forex exchange rate. The issue is a cable of N250 is now N800 and in some instances even lower in quality.
That's a 320% Increase in response to a less than 50% increase in forex rate.

Example Three - Detergent of 190 grams going for N110 is now 160 gram and going for around N180. When you check well the overall increase doesn't correspond to the forex rate increase which affects basic cost of imported raw materials.

Example Four - Cow Beef. Yes, cow beef.
We all know most cows graze on grass and their transportation cost increases are marginal. But then cow sellers have adjusted as though they are feeding on human food that has doubled in prices. Now that's a little bit out of place if you ask me.

Price increase is necessary to keep business afloat when input cost increases but then not in a greedy manner that will come back to hurt too many people.
At this point, I like to call upon consumer protection and market regulation agencies to act. They aren't created to complain about DSTV and MTN price increases alone like South African businesses are the only foreign investments in Nigeria

Thank you.

You have to consider the sudden price increase of diesel. Many factories and companies operate mainly on diesel.

kolamilan:


You have to consider the sudden price increase of diesel. Many factories and companies operate mainly on diesel.

cows don't.
Phone accessories are imported and prices on Intl e-commerce sites like aliexpress and eBay are still where they were. Only dollar rate changed and it is about 50% increase.
Bike men use petrol which is still being heavily subsidized last I checked.
Only the detergent example is applicable to your argument. Let's not support overdoing of something as sensitive as pricing of basic commodities.
In UK, a popular chain distributor removed Heinz branded product from their shelve because they overdid their increase.

RepoMan007:
I believe we are all aware of the current wave of inflation or price increase of basic necessities.
I have come to the observation of excess price increase among Nigerians that's not in tandem with input material increases. I will give some personal examples to buttress my point.
Example One - We all know petrol has gone up from around N170 to around N220 per litre on the average. Now that's a 29.4% Increase in basic input for transporters, but a motorcycle ride of N50 is now N100. That's an 100% increase and not in sync with petrol price increase.

Example Two - I buy USB cable once in a while and we all know these thing are imported so depend on forex exchange rate. The issue is a cable of N250 is now N800 and in some instances even lower in quality.
That's a 320% Increase in response to a less than 50% increase in forex rate.

Example Three - Detergent of 190 grams going for N110 is now 160 gram and going for around N180. When you check well the overall increase doesn't correspond to the forex rate increase which affects basic cost of imported raw materials.

Example Four - Cow Beef. Yes, cow beef.
We all know most cows graze on grass and their transportation cost increases are marginal. But then cow sellers have adjusted as though they are feeding on human food that has doubled in prices. Now that's a little bit out of place if you ask me.

Price increase is necessary to keep business afloat when input cost increases but then not in a greedy manner that will come back to hurt too many people.
At this point, I like to call upon consumer protection and market regulation agencies to act. They aren't created to complain about DSTV and MTN price increases alone like South African businesses are the only foreign investments in Nigeria

Thank you.

This analysis lacks depth. It is probably so because you re not a business person. The okada rider you mentioned above increased his price by 100%, so that he would be able to afford other things he does not produce whose prices have also increased.


Same thing with the USB cable seller. Dollar used in importing it has increased. A Dollar is at #650 ATM. So do u want them to sell at a loss?

Have u asked ursef why re food prices increasing especially the ones produced in Nigeria. It is because of the multiplier effect of general inflation. People would always factor- in their rent, transport, food, provision, entertainment,(which have skyrocketed in price) etc in any product they re selling.


So u should hold the major culprits responsible; the leaders who lack the wherewithal in knowledge to make things right.

OP, I agree with you in some areas. A customer needed a bag of beans. I told her 66k for 32 rubbers and I will bring it to her junction. She said she sells at 2400/rubber and her profit will not come out. I was shocked. You will make 76,800 on a bag and not contented with 15% profit. In a busy location, you can sell more than 3 bags in a month. Na we dey do ourselves.

CYBERSOLDIERSre:


Said who?

And naira is exchanged at $1/680?

Stop that already.

APC have destroyed Nigeria and want to kill everyone.

My statement is factual and I have no interest in converting this into a political discourse.

ogashman:


This analysis lacks depth. It is probably so because you re not a business person....

Same thing with the USB cable seller. Dollar used in importing it has increased. A Dollar is at #650 ATM. So do u want them to sell at a loss?

using a 50% increase in exchange rate to justify 320% increase in price speaks volume of your hypocrisy.
You even determine I cannot be a business person because of your haste to go political with unjustifiable prices increases. Okay.

ThatPetiteChic:
OP, I agree with you in some areas. A customer needed a bag of beans. I told her 66k for 32 rubbers and I will bring it to her junction. She said she sells at 2400/rubber and her profit will not come out. I was shocked. You will make 76,800 on a bag and not contented with 15% profit. In a busy location, you can sell more than 3 bags in a month. Na we dey do ourselves.

Thank you. People don't see the need to increase according to the increase from source. Increase in price should be close to general inflation rate in order not to set off an avoidable chain effect

RepoMan007:
using a 50% increase in exchange rate to justify 320% increase in price speaks volume of your hypocrisy.
You even determine I cannot be a business person because of your haste to go political with unjustifiable prices increases. Okay.

Oga go and sit down....when u open ur business, sell at 1% profit and see if u would be able to pay ur bills comfortably

ogashman:


Oga go and sit down....when u open ur business, sell at 1% profit and see if u would be able to pay ur bills comfortably

Come and force me to sell at 1% profit or stop assuming I don't have a business and get lost.