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Manufacturers plan general price hike

 

Manufacturers have predicted fresh hikes in the prices of commodities in the market to rise in response to the continued fall of the naira against the United States dollar.

On Friday, the naira plunged to N1,420/$ at the parallel window of the foreign exchange market.

The President of the Manufacturers Association of Nigeria, Francis Meshioye, said the naira, which has now remained at over N1,400 in the parallel market for two days, would lead to price hikes in the economy.

He said, “It is not possible to remain profitable with this exchange rate. The first challenge is breaking even. It means the prices of things will be higher, and the income is not there for people to buy things as they should buy as things become more expensive.

Meshioye predicted that these price hikes were unlikely to resonate well with consumers whose spending power has been continuously depleted.

According to him, the frequent fluctuations in the forex market have made it difficult for manufacturers to make long-term plans.

The president of MAN added that the current FX reality creates the need for manufacturers to come together and fashion out viable solutions to stay in business.

The fall of the national currency has been partially responsible for high inflation rates in the country. As of December 2023, inflation rose to 28.92 percent according to the National Bureau of Statistics.

Punch

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