Economists: Naira Appreciation Won’t Immediately Lower Food Prices

Economists caution that despite the recent appreciation of the naira against the dollar, Nigerians shouldn’t expect an immediate drop in food prices. They explain that there’s typically a delay between currency fluctuations and changes in commodity prices.

The reason behind this delay lies in the existing stock purchased at higher prices, which businesses need to sell before adjusting prices downward.

Additionally, market observers are closely monitoring the actions of the central bank to gauge future price movements.

Traders on the ground confirm that even with the recent decline in the dollar, prices of essentials like rice and meat have remained stable or even increased.

They attribute this to the costs incurred in maintaining product quality amidst infrastructural challenges, such as the need for diesel to preserve perishable goods due to unreliable electricity supply.