February 20, 2024
AFRICA: NIGERIA IS IN A SERIOUS ECONOMIC CRISIS.

AFRICA: NIGERIA IS IN A SERIOUS ECONOMIC CRISIS.

By Zubair A Zubair.

its become one of the subject matter to discuss vividly on the impact of hyperinflation on economic growth and development. However, inflation is part of the general cancer which attributes to so many economic paralysis both on internal and foreign trade aspects.

 

Inflation is a general increase of the prices of goods, products and services produced over a given period of time.

Income from households, like nominal and real wages, disposal income and the tax deducted from business revenues and so on, inflation curt off the purchasing power and leads producers to compute in the market by producing more goods as a result of demand full inflation due to increase of population size and age distribution.

As we observed, therefore, the rate of inflation is escalating everyday due to unproductive economic policies, government imposes higher levies upon consumer income, businesses and other companies paid huge amount of funds as taxes, thus, led to shifting the burden of tax effect to the final consumers by rapidly increase the prices of their consumer and capital goods so as to maximize the profits.

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Meanwhile, consumers buy food items everyday like rice, cooking oil, sugar, soaps, milk, flour, meat, fish, perishable goods like tomatoes, patatoes, pepe, and so on, and the producers increase the prices because of their necessity in human lives, people must eat and drink to survive, the producers increase the level of their total revenue, or sales by rising the price, this happined as a result of higher taxes rate charged the importers or merchants who brought foreign goods and products into Nigeria like rice, wheat, motor cars, generators, engines and other consumer goods and sold at higher prices to the consumers and government folds its arms and unsympathetically, less care about the interests, preferences, consumers sovereignty. Inflation act like a hurricane and wild fire burning over the consumers income and savings.

The fiscal and monetary policies all are negative towards national production, GDP and NNP are boosting and growning on papers while in reality is not, the average Nigerians suffering from such inflation and economic hardship.

 

The real wages are always negative function to consumers incomes, and at long run distorting the purchasing power of our local currency. Todays, in 2022, 1000 Naira loss its value compare to 100 Naira in the previous years, the ration is 100:1000.

Our real wages or adjusted wages is the basis problem of every lower income earner, the civil servants are always poor, before the quarter of every blessing month, he or she exhausted his entire nominal wage before paid. The rate of credit or loans is accumulated hugely which might be greater than the total income earn at the end of the month.

The level of our saving or investment is perfectly zero(0.00).

why always price increases in Nigeria. The natural forces of demand and supply, I knew are the real determinent forces of market in the perfect competitive market, but what are the role of government, trade unions, chamber of commerce, marketing board all are needed to statbilze and regulate the market price otherwise, the economy will perish and result recession.

At this jecture, I emperically believed that, the idea of closing borders is fail and full of mistakes and weak executive capacity because it perpetrate the yawning gab of social and economic inequalities, rich becoming more richers and poor remain in abject poverty, and aimed to survive, struggle for their daily lives food.

 

Households, firms and government play vital role in economic growth and development but there is imbalance in the economic cashflow.

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AFRICA: NIGERIA IS IN A SERIOUS ECONOMIC CRISIS.

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