Recently Nigeria faced such problem as rising prices because of currency devaluation, falling oil prices, and rising inflation.
As more than 90 percent of the country’s revenues come from exporting oil, Nigerian economy has suffered a little breakdown after oil has lost almost 60 percent of its value over the last six months.
Trying to answer the question of how currency devaluation, falling oil prices and rising inflation have affected ordinary Nigerians, an Aljazeera reporter visited a market in Abuja.
According to a woman who came to the market to buy some toiletries, sellers added from 300 to 500 Naira to every product.
“It’s ridiculous. I came to the market today with intent to spend within N7,000 but ended up spending N9,000. Most of the things I used to buy for like N1,500 are now worth N1,800, N1,850 or even N2,000. So they added money to some many commodities,” she said.
As sellers buy their goods in dollars from abroad, they had to almost double the prices after the global price of oil fell and the Naira lost nearly 10% of its value against the dollar, making goods more expensive to import.
Abuja stores that bring most of the goods from abroad have been preparing for the increased cost of importing goods.
The consumers who have to buy dollars when they travel abroad turned up in a harsh situation as they have to spend more and more Naira to get dollars.
An economist, Ifeanyi Ukoha, said: “We should be more responsible, we should save during good times. I mean if you look at some Arab countries that also oil-rich they diversify their economies away from oil.”
A former director of Nigerian Central Bank, Akpan Hogan Ekpo, also said that Nigeria should diversify economy away from oil and look for non-oil sectors.
Nigerians are hoping that the price of oil stabilizes so that the country can regain its income and the prices can come down.
According to Aljazeera, there could be more pressure on the currency as elections are just around the corner. Lanre Buluro, head of research at Primera Africa Securities Ltd., said the shift of general elections effects not only political life of the country, but also Nigeria’s economy.