As I reflect on the current state of Nigeria, I am amazed by the paradoxical economy that seems to defy logic and reason: How Nigeria, a country blessed with abundant natural resources and potential for self-sufficiency, finds essential commodities such as cement, iron, rice, and everyday basic needs increasingly unaffordable for the average citizen, further blurring the invisible line between the rich, middle-class, and the poor. This question remains a priority if we are to delve deeper into the underlying factors driving this economic imbalance that has placed Nigeria on a scale of uncertainties.
At the forefront of this alarming issue is the alarming inflation of cement prices, which have soared to unprecedented heights, surpassing 10,000 naira per bag. What perplexes me, even more, is the fact that all the raw materials for cement production such as the gas for powering production plants, including limestone, are found in 14 states in Nigeria including Sokoto, Gombe, Edo, Oyo, Plateau, Ogun, Cross-River, Akwa-Ibom, Bauchi, Enugu, Ebonyi, Benue, Ondo, and Kogi states; billions of metric tonnes of clay spread across Edo, Bauchi, Taraba, and others; and about 1 billion metric tonnes of gypsum found in Adamawa, Anambra, Bauchi, Bayelsa, Benue, Borno, Delta, Edo, Gombe, Imo, Kogi, Ondo, and Sokoto.
Similarly troubling is the surge in iron prices, another key material in cement production, despite the presence of abundant iron ore reserves within our borders. States like Kogi, Enugu, and Niger are endowed with rich deposits of iron ore, highlighting our nation’s potential for self-sufficiency in iron production. Yet, the inexplicable escalation in iron prices raises questions about market manipulation and profiteering at the expense of the Nigerian populace.
These are the essential minerals sourced locally, spread across Nigeria states, yet consumers are left grappling with exorbitant prices that strain their already limited budgets. In current Nigeria, triple the price of land will be needed to purchase cement for construction. Trucks of sand fetched from underneath the earth also remain nothing to write home about. Why are we drained to pay for our locally sourced minerals? I keep reflecting on the reason the price of cement, which is sourced and produced locally, keeps skyrocketing, competing for a top spot with foreign rate at the top of the chart.
Another alarming side of this price surge is the inflation bedevilling the supposed backbone of the nation’s economy – the agricultural sector. The affordability crisis surrounding locally produced rice is deeply troubling, despite the government’s concerted efforts to promote domestic rice production and reduce reliance on imports, a dedicated move to reduce Nigeria’s consumer and reliance habit on foreign rice. If Nigerians purchase and promote our local products, it will limit Nigeria’s imports and increase exports which will further put Nigeria in the global market.
However, today, the prices of locally grown rice have skyrocketed beyond the means of the common people and moved beyond the cosmos. This difference between production costs and retail prices highlights systemic inefficiencies and market distortions that threaten food security and increase economic hardship. One wonders how dollar increment continuously and gargantuanly affects the price of rice grown in Kebbi, Ebonyi, Kano, and other states in Nigeria! This is obviously an act of sabotage within Nigeria for the wicked accumulation of wealth.
Adding insult to injury is the exploitation of foreign exchange rates by traders to price essential commodities such as pepper, palm oil, onions, garri from locally sourced cassava, and others. This predatory practice further eradicates the purchasing power of ordinary Nigerians, propelling economic disparities and widening the gap between the privileged few and the marginalised absolute majority. Should Nigerians then hold the government responsible for all their woes when Nigerians are in a race to deplete Nigerians purchasing power in a bid for profiteering?
Pondering these realities, it is unfortunate that the down-spiralling of Nigeria’s economy is a self-inflicting pain, burning and scorching Nigerians, regardless of their status. With traders’ heinous greed to maximise profit, disregarding the negative impact it drives on Nigeria’s economy, pushing millions of struggling Nigerians below the poverty line, while blaming foreign exchange, a term which many do not understand, and do not have a direct impact on locally sourced goods, I am reminded of the urgent need for decisive action to address the root causes of Nigeria’s economic woes. It is imperative that we hold accountable those responsible for price manipulation and market distortion while implementing targeted interventions to alleviate the burden on the most vulnerable segments of society.
In the short term, I advocate for the regulation of executive orders allowing for the temporary importation of food, cement, and all essential items. This measure will provide much-needed relief to Nigerians grappling with inflated prices while enabling the government to address underlying supply chain inefficiencies and market distortions.
Simultaneously, I call upon our elected representatives to collaborate on enacting legislations that safeguard consumers against exploitation and ensure fair and transparent pricing uniformity. By establishing clear guidelines and penalties for price increment and market manipulation, the government can foster a business environment that prioritises the well-being and prosperity of all Nigerians.
In conclusion, the economic challenges facing Nigeria demand a coordinated and multifaceted response. As citizens, we must remain vigilant in holding our leaders and owners of the means of production accountable and advocating for policies that prioritise the needs of the people. Only through collective action and unwavering determination can we chart a path towards a more equitable and prosperous future for our beloved nation.
Maxwell Adeleye writes from London, United Kingdom
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