It is no news that the Nigeria’s currency, naira, has recently gained value against the dollar in the parallel market, yet the price of commodities in Nigeria keeps skyrocketing.
In the parallel market, the Nigeria’s Naira gained so much recovery between the month of February and March. The dollar rate improved from $1 to N1600 in the month of February and positively increased from $1 to N1250 in March, which was a 28% gain in one month.
Since January, we have seen the dollar rise incredibly, goods and services likewise have increased in price. The reason for this, according to traders is the increase in dollar in comparison to naira. What we have seen in recent time is almost a reverse, whereas there is a fall in the dollar price, it has no effect on the price of goods in the market. The price of goods in the market still holds on to the former price that was blamed at the dollar.
Going further, researches and interviews that have been conducted in market places, has shown that Nigerians have lamented so much about the increase in price. Some Nigerians have complained that they barely eat once a day, talk less of having a healthy three square meal a day. They pleaded with the government to do something about the increase in price of goods.
Some months ago, while the dollar rate had value against the naira rate, the price of one satchet Peak Milk was N150, but after the fall in dollar, the price increased to N200, while some traders sell at N250. This also affected carbonated drinks which increases weekly according to Wholesalers in the market. This has not only affected the Peak Milk and Carbonated drinks but also other products.
Despite the many policies put in place by the government to curb the price of goods, it has refused to change. For Nigerians to have fall in price of commodities and have goods go back to a fair price, it would need more than a fall in dollar for it to be affected. It would need a military action in the side of the government to force traders and sellers to beat down their prices to make it possible for Nigerians to get goods at their level.
As of 2012-2015, the dollar rate was $1 to N158- N171, and there was a considerable increase in the price of goods. The solution to these problem is for the government to take a military approach, and if they do, there would be a lot of difference.
Government should peg the prices of products the same way they did to the petrol, and by pegging the prices, it would cut a lot of these excesses. Doing this would also ensure a uniform price and make things more affordable.
Traders who refused to comply to the fixed prices placed by the government should be punished or fined.
Chinedum Anayo 
saharandaily