Food Prices Instability: Should Nigerian Border Be Opened?
Foods prices have been on the rise, and some market observers suggest that this is not unconnected with the land border closure policy.
Border closure, a form of protectionism that is against free market principles, has favoured some fast moving consumers’ good operators.
However, Nigerians are paying for inefficiencies of local producers due to fewer competing products available in markets.
Despite so advantages recorded on corporates balance sheet, the Nigerian streets are not finding this funny.
Foods prices have become quite unstable, helped by the eliminated competition against substitutes products, often cheaper and solid quality.
Some Fast Moving Consumer Goods operators, due to reduced availability of these substitute products, were able to raise prices of goods and services.
Spiral effects has been 12-month straight increase in average price level, driven by cost of foods items – nothing seems to be cheap for now.
Raising prices of goods and services was a difficult thing to do when the borders were opened.
Unfortunately, the inflation has been rising due to cost rather than demand, thus little impact on employment level.
Unemployment hit near term high in the first quarter of 2020 according to data provided by the National Bureau of Statistics at 27.1%.
This indicates that about 21,764,614 (21.7 million) Nigerians remain unemployed. Nigeria’s unemployment and underemployment rate (28.6%) is a combined 55.7%.
A review of the Nigerian Manufacturers sector shows lack of competitive advantage, mainly derived from the country’s poor comparative economic advantage.
In the external front, African countries are casting votes of no confidence on Nigeria’s leadership.
Recently, Rwanda’s leadership opened its border to African countries – a visa free offer which makes the move quite Un-African.
There are agitations that Nigeria is losing in leadership grand in the African continent.
The largest economy that harbors the poorest of the African descents had planned to hit $900 billion gross domestic products in 2020.
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Though, Nigeria is far from achieving this, working with some 50% of the projection, population has expanded at a steep rate.
Border was closed as an anti-dumping measure but critics are of the view that border patrol and related security measure should have been strengthened instead.
While there are advantages and disadvantages with the government decision, it looks like it is time to review the policy.
What is your view? Should the Federal Government of Nigeria re-open its borders?
Why do you think it should or it should not? Kindly send your response to email: Editor@dmarketforces.com
Food Prices Instability: Should Nigerian Border Be Opened?
