A recent report indicates that Nigeria is on the brink of another round of commodity price increases. Francis Meshioye, President of the Manufacturers Association of Nigeria, expressed concern, stating that without a favorable shift in the Naira’s value against the dollar, a surge in the prices of goods is inevitable.<\/p>\n
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Meshioye emphasized the difficulty of sustaining profitability at the current exchange rate. He explained that the looming challenge of breaking even in business operations could lead to higher prices, subsequently impacting consumer purchasing power and reducing demand.<\/p>\n
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“The demand will become low, and this will affect our bottom line. The break-even point will become critical. So, what businesses should do is to ensure that they break even at this time. It is a critical and very challenging time for us,” Meshioye remarked.<\/p>\n
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The President of the Manufacturers Association of Nigeria also highlighted the volatility of the currency market, making it challenging for manufacturers to formulate stable, long-term strategies. He stressed the need for businesses to regularly revise both short-term and long-term plans to adapt to the economic realities.<\/p>\n
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Meshioye attributed the depreciation of the Naira, which was the worst-performing currency in Africa in 2023, to the government’s decision, led by President Bola Tinubu, to float the currency. The Central Bank of Nigeria officially removed the rate cap on the Naira at the Investor’s and Exporters’ (I&E) Window of the foreign exchange market in June 2023.<\/p>\n
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Adding to the economic concerns, Nigeria’s annual inflation rate surged to 28.92% in December 2023, up from 28.20% in November, according to data from the National Bureau of Statistics. This increase marked a new high, contributing to the challenges faced by businesses and consumers alike.<\/p>\n
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<\/p>\n","protected":false},"excerpt":{"rendered":"
A recent report indicates that Nigeria is on the brink of another round of commodity price increases. Francis Meshioye, President of the Manufacturers Association of Nigeria, expressed concern, stating that without a favorable shift in the Naira’s value against the dollar, a surge in the prices of goods is inevitable. Meshioye emphasized the difficulty […]<\/p>\n","protected":false},"author":14,"featured_media":17188,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173,172],"tags":[],"class_list":["post-17183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/17183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=17183"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/17183\/revisions"}],"predecessor-version":[{"id":17189,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/17183\/revisions\/17189"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/17188"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=17183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=17183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=17183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}