Commodities are supposed to witness a slight, if not significant, reduction in prices owing to the fact that the price of some petroleum products, particularly diesel, has been reduced. This should enable wholesalers to take proactive measures in reducing the prices of commodities across the country.
Additionally, Bureau De Change (BDC) operators now buy dollars at N980/$ at the open market and sell at N1,020/$.
Thus, the naira has appreciated faster than expected against the United States dollars. It’s the first time in the last 15 years that the exchange rate for the dollar in the parallel market is less than that at the official window. This is another reason to reduce prices of goods because whenever the naira depreciates marketers suddenly increase the prices of commodities.
The burden of inflated prices falls heavily on the masses, eroding their purchasing power, and hindering their ability to afford essential goods and services for their well-being. The need for wholesalers and marketers to reduce prices of commodities is not only a matter of economic necessity but also a moral imperative to ensure the wellbeing of the people.
At the peak of this development lies the economic inequality between the affluent and the marginalised. High wholesale prices trickle down to retail markets, ultimately burdening everyday consumers who struggle to put food on the table. Families are forced to allocate larger portions of their income to only food leaving little or nothing for savings or discretionary spending. This strain perpetuates a cycle of vulnerability and worsens poverty.
Nevertheless, the repercussions extend beyond individual households to impact but the macro and micro economy. Reduced purchasing power weakens consumer spending, which in turn stifles economic growth. Small businesses reliant on consumer demand suffer as sales dip, leading to staff layoffs and closures. Thus, addressing the issue of high wholesale prices is not only crucial for the welfare of individuals but also for the overall development of the economy.
Wholesalers play a pivotal role in determining the affordability of goods nationwide. By lowering wholesale prices, these entities can alleviate financial burdens on consumers and stimulate economic activities. Such a move demonstrates corporate social responsibility and fosters goodwill within the society. It also contributes to long-term sustainability by promoting consumer loyalty and trust in the brand.
Therefore, the urgent need for marketers to reduce prices requires a multifaceted approach that considers various factors. While profit maximisation is the primary motive for inflated prices, they should not come at the expense of the poor and vulnerable in the society. Wholesalers must recalibrate their pricing strategies to strike a balance between profiteering and affordability. This may involve renegotiating contracts with suppliers, streamlining operational costs, or exploring alternative distribution channels.
Moreover, government agencies such as consumer protection agency, the public complaint commission and the federal competition and consumer protection commission that are saddled with the responsibility for intervention and regulatory measures can complement efforts to reduce prices of commodities that thrive day-in-day-out in the country.
Policies that promote fair competition, combat monopolistic practices, and incentive price transparency can create a conducive environment for price adjustments. Additionally, tax incentives or subsidies may encourage wholesalers to pass on cost savings to consumers without compromising their bottom line.
Conclusively, the urgent call for price reduction resonates as a moral imperative and economic necessity. It represents a collective effort to alleviate the burden of inflated prices on consumers, stimulate economic activities, and promote social equity. Wholesalers hold the key to effecting change and must rise to the occasion by embracing responsible pricing practices. Only through concerted action can we pave the way for a more prosperous and inclusive future for all.
Khadija Saleh Ahmad,
Department of Mass Communication, Abubakar Tatari Ali Polytechnic, Bauchi, Bauchi state
