I came across a profoundly insightful piece this morning, wherein the author aptly labeled Cardoso and Edun as Ikoyi economists engaged in a fierce battle within a Fadeyi economy. Lol
In this remarkably brilliant piece, the author xrayed the failure of what he termed as theoretical policies attempting to address the harsh realities of our economic landscape.
He zoomed in on the surge in interest rates, the highest in recent history, and its futile impact on economic indicators like inflation, among others.
According to the writer, the hike in interest rates aims to curb purchasing power, thereby reducing demand and, consequently, lowering prices to stimulate demand.
However, as I chuckle along with the writer, it’s evident that demand for goods and services remains stagnant, with minimal increases, especially for essential items like food, healthcare, and transportation, while costs continue to soar.
The cost of baking a loaf of bread, for instance, has skyrocketed by over 200%, yet demand has plummeted significantly. It’s a paradoxical scenario where loaves of bread abound, yet affordability eludes many. Now, the Central Bank of Nigeria (CBN) proposes an increase in interest rates, further inflating production costs, and escalating prices, all without addressing the core issue of demand.
This is why I resonate with this writer; he gets it. The theories are failing us, and what we have is a Yepa economy driven by panic, corruption, and now, a new villain – replacement cost.
Replacement cost is a newly introduced devil that has sneaked into the equation. As inflation skyrockets, so does replacement cost, leading to price hikes of Malthusian proportions, coupled with hoarding that exacerbates inflation further.
To tackle these challenges, the author advocates for Bolekaja tactics, where swift action is taken at the root of the problem, even if it means resorting to physical force.
The concept is simple: a few individuals are holding us hostage, strategically positioned in critical sectors such as forex, importation, distribution, access to raw materials, and banking. They collude with certain government officials to maximize profits at the expense of the people and the economy.
Take cement, for example; it’s beginning to resemble a cartel at play, with prices arbitrarily set to manipulate supply and demand, regardless of the people’s welfare.
The recent hike in prices from N5,000 to current levels in less than nine months is alarming. However, increasing interest rates or implementing IMF-induced policies won’t bring prices down because these individuals control the entire process, from ports to ministries, down to distribution channels, and even dictate who gets to buy.
This situation isn’t unique to cement; it permeates various sectors of the economy, where a few individuals manipulate prices and control the flow of goods and services.
The solution is clear: we must dislodge these individuals and restore trust in the system.
From customs to distribution networks, we must root out corruption and instill accountability. This is no longer a job for Cardoso and Edun alone; it requires a collective effort from institutions like the EFCC, ICPC, and even the Stock Exchange to weed out economic saboteurs.
Companies with valuations exceeding N1 trillion must undergo thorough scrutiny to ensure transparency in their processes, procurement, pricing, and distribution practices.
We can no longer tolerate exorbitant price margins and unscrupulous tactics that burden the people. It’s time for decisive action to salvage our economy and restore trust in our institutions.
I call on President Tinubu to take bold steps in addressing this crisis. Let’s level the playing field and save Nigeria from economic turmoil. A revived economy is our best defense against political instability. Let’s go rogue!
Thank you.
Duke of Shomolu
