An economic Expert, Dr. Aderemi Medupin has explained reason for the continuous hike in market prices of foodstuff despite strengthening of the naira.
He attributed the development to the non regulation of prices in the face of high demand and supply.
Medupin who is the Acting Dean Faculty of Management Sciences at Al-Hikma University stressed that the recent appreciation of naira has not been consistent, therefore it will not affect market activities.
He said: ” The explanation is very simple but lies on two intentions, first is the intention of those who are selling, they want to maximise their profits to an extent that the appreciation of the naira will be a bonus to them.
“Again, the market forces will continue to take advantage of the hike in prices of commodities to make excess profit, therefore they will continue to frustrate the system to sustain it.
“Also the consumers are impatient expecting that because the dollar has fallen it will immediately affect the market activities. It’s not true,” he further explain.
Medupin stated that government intervention in ensuring that market forces key into the current situation will not work because the forces are stronger than government.
According to him, the prices of commodities in the market will gradually depreciate when there is consistent fall in the dollar not the current fluctuation.
He called in government agencies like the Central Bank of Nigeria to sustain the policy of pumping dollars into the parallel market and to work with market forces in reducing inflation to minimum level.