It is tough, inflation is too much in Nigeria. The Oxford dictionary explains inflation as “a general rise in prices of services and goods in a particular country, resulting in a fall in the value of money”. Indeed “rise in prices of services and goods” and the “fall in the value of money” are apt in Nigeria. The twin devils are uncontrolled price gyrations and fall in money. These are devastating scenarios that cause societal degeneration. People of my generation if they start recalling the good old days and we start narrating how it was when we were in the primary school till end of 1965 when Pounds, shillings and pence were the legal tender. In 1971, we were admitted at ABU Zaria before the change from pounds to Naira. Till we graduated, prices of services and goods and Naira value were within tolerable limits. Are we really in a sane nation at all? How many generations in between are we speaking?
Back to the good old days when we were at the primary school, one could not eat three pence groundnuts at once. With 6 pence we used to eat roasted or lamb meat and had belly full. Now one must eat N600 equivalents before he could see well after a devastating hunger. At ABU in 1971 we were charged 1 shilling for a bus ride from Tudun Wada to ABU Samaru. In July 1975 during my NYSC my first car a Fiat 124 sports bought by my parent for me, a one in town in Katsina and Jos, cost N4,550 while after my accident in September 1975, again it was replaced with a 504 GL, then only SSG’s were riding as official cars, at N5,500. During our NYSC at Benue-Plateau our allowance was only N150 with a bicycle allowance of the same amount N150. After the NYSC in August 1976, our generation could purchase a fairly used car for N2,500. A brand new VW Beatle was less.
We had the best of the world or so it would appear because to service your car with only N10 was the case. One could buy brand new sets of plugs; a contact set; engine oil and pay for the service all in it. Now N10 fried groundnuts even my 3 years old grandchild cannot do much. Within seconds he will have finished it. Now I have 17 of them and the eldest has written his JAMB. In 1977 my parent decided I should have a house since I wanted to stay in Kaduna. The plot 100 ft by 50ft was purchased at price of N2,500. A bag of cement was sold then at between N5.50 and N6 as against N2,600 today! So for one bag of cement in 1977 with the same utility, it would amount to about 450 bags or 22 tons! I was offered a huge GRA plot at just N8,000 and negotiable but since it stood at more than my 2 years salary I thought it was too expensive.
On inflation and with the Naira, in 1979 yours sincerely, was serving with the NNPC at the Kaduna Refinery. One of the foreign consultants engaged by the NNPC we jointly worked to oversee Chiyoda the Contractors used to blast the Naira for not holding much water. He would lament “what is a Naira other than 6 bloody eggs!” Now 1 egg costs N40 on comparable bases with N40 in 1979 one would collect 240 eggs or 20 dozens. This gives at 2 and ½ dozens per crate would come to 8 crates. Until 1985, N1:00 is more than 1 US Dollar in value hence what has gone wrong with the so called educated Nigerians.
In present day Nigeria one is challenged to ask with all the quantum of degrees, PhDs in economics, Business administration and the numerous accountants that they say are chartered and the seasoned bankers what have we earned today, a Naira that was more valuable than a US Dollar in the exchange market in 1985 has plunged to N362?
The Nigerian is so callous to his brothers and sisters such that where ever a commodity is linked to his survival, the price keeps changing and one has to pay through his nose. The Nigerian has made the US Dollar a blackmail commodity on his fellow citizens. With few US Dollars, he will never mind if the Naira keeps degenerating while he counts his chickens abroad. The stock trading was made ridiculous and the regime of interests rates during the days of finance house were fashioned such that ‘monkey de work baboon de chop’. This mentality keeps inflation on the perpetual upward trend with no limits in view coupled with the sheer numbers of unproductive and unfathomable petrol stations built across the country even in remote villages and locations with zero economic sense.
So long as the cabals in the petroleum and FX markets are not controlled, the petrol pump price and the depreciation of the Naira/Dollar will remain inelastic. This requires patriotism and the fear of Allah/God which are lacking in Nigeria. So long this remains, so long the kidnapping, corruption, communal clashes and societal degeneration will continue to devastate Nigeria and the killer inflation will worsen the commotions. Then every Nigerian will face the bitter consequences given that reason is far from our collective responsibilities. IMF prescriptions and World Bank have never worked and will never work. If there is anyone to salvage Nigeria it is only Nigerians when they force themselves to understand their differences and live with that scenario.
Engr. Fari wrote this piece from Kaduna
