I won't be centering on the crypto market price on this article. Anyway it is always a good time to thumbs up LEO for such a bull move. Many are in doubt if it will stand the test of time; personally, in both directions it remains a win-win for me. Leo price growth equals better daily rewards returns, if the price should decline, a big opportunity to buy more. It is ALL about understanding what this InLeo ecosystem is building. I am eyeing prices beyond just cents, but keep it long term.
That said, let me come home, it is about the current state of the Nigerian economy. I think I delved into this some week ago; how the food consumption market and saw some breathing space for consumers. Prices of local food stuffs dropped between the period of May to June. Yes, it is always a matter of how long. This is August and what follows is the ember season. Seasonally speaking, this time of the year always inculcates higher goods prices and I think it is boiling up already.
I just got an incoming about a fuel strike. IPMAN (Independent Petroleum Marketers of Nigeria) and NUPENG (Nigerian Union of Petroleum and natural gas Workers) have joined forces to embark on a strike. I heard the rumors late last week and it never took effect in our part of the country. Some state capitals like Markurdi, the capital of Benue, were feeling that early hit since Tuesday. Prices of blackmarkets according to reports rose to N1500 and N1700.
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The effect has now reached the southern part of the country where I am staying. As of yesterday, premium Motor Spirit (PMS) was sold at N940 which is the current standard price. Of course that will change by today, blackmarkets dealer will be making huge bucks in the process. I haven't gone out yet to research the price. From experience I can predict the price to near accuracy, we should be looking at N1250 to N1400.
What triggers this strike according to NUPENG and IPMAN has been the road harassment caused to truck drivers. In the case of Markurdi, this harassment is backdated to the previous government regime where youth attacked a truck driver and did damages to the product. The compensation was not received and it has added up to encourage this current strike. The issue of truck driver harassment is not new, it has been one of those reported stories where even legal entities like the security ARMs of the country have even been said to be involved.
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From the reports of Markurdi, it is assumed to last for just three days. How it will be for three days remains uncertain. It started on the 5th of June from Markurdi and it is just reaching us here on the 7th, this probably shows an extension. We know how the scene is likely to be, the government will give deaf ears for some days before intervening courtesy of inhouse meeting for a possible solution.
To conclude, let me add, my concerns in general are not about the strike and how long it will last but the Ripple effect it will have on The General markets especially the food consumption sector. Road transport workers will increase transport fair prices to balance up with high PMS prices, producers will do the same for those using Diesel to process food stuff. We are likely to see a bounce back in high cost of living as we heard into the ember season. Will independent marketers even resume product sales at earlier pump prices? This is something I am in doubt, we should be looking at around N980 to N1000 per litre when they return. If this happens then we should all be prepared for another ‘high expenses ember’.
Adding to that, even if they are to return to previous prices, it will be difficult to correct this in the general markets. For instance, when the prices of PMS skyrocketed to N1,200 the prices of road fairs were increased to catch up. When it died down to N940 the charges did not reduce. Road transporters were coming up with excuses or facts as it may seem that vehicle spare parts are very expensive irrespective of even when the pump prices have dropped. We go again, the Nigerian economy has remained a ground of ‘prepare for the worst while praying for the best’. Households will have to reshape their budgets again to meet up.
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