National Bureau for statistics said food prices in Nigeria have come down. But that has always been the trend when seasonal foods are entering the market.
I don’t want to argue with NBS on the accuracy of its figures. I have always disagreed with it. NBA accepts the fact that prices of rents and school fees, electricity , petrol, diesel, kerosene, cooking gas and imported goods have not come down.
My concern with the NBS figure is that it did not give reasons why prices remain high in some goods and remain low in others and whether there was any macro -economic input from the government to control inflation.
The truth is improvement or it’s absence in the economy is without any deliberate government effort. Nigerian economy has been under autopilot since the coming of this government.
Price of rice have come down with the importation of paddy rice. But government is not managing the delicate balance of keeping the milling industries and rice farming alive. That can only be achieved through subsidy. Farmers will be happy to go back to the farm if they can get cheap fertilizers,seeds and pesticides. Millers will be happy will low taxes and cheaper electricity and diesel.
There is also a very uncomfortable situation where prices dropped because there was no demand. Because people don’t have money, demand for goods and services is depressed and because there is no demand,prices have to fall down. This is simple economics. NBS didn’t ask stores and businesses whether they were selling their goods and services or not. Prices were forced down because Nigerians don’t receive enough salaries to spur demand. In other words consumption has drastically dropped in Nigeria and it is this very grim picture the BPS should look into.
Why are demands falling?
Demands are low because the government has not created employment where people can earn and spend. Demands are low because government watch helplessly as businesses are closing shops and sending workers into unemployment markets. BPS should be concerned that about 60 percent Nigerians don’t earn any money in their daily lives. Those that work don’t receive salaries in arrears of several months especially at state and local government levels.
Government should look at the macro environment and see well for itself. Fall in inflation is not economic growth.
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