Inflationary Pressure from High Tariff (VI)

By

Sampson Iroabuchi Onwuka

The trouble begins when we have little or no success in privatization and when a country like Nigeria turn to foreign investors who for the fact of being outsiders need guarantees of return from their investment. The problem becomes worse when these foreign investors begin to look for repatriation in super currency for instance dollars. Repatriation in dollars from Nigeria Naira is such a market crash that the 1/150 rate of exchange is the only way to understand price appreciation through market Nigeria.

To say that Globacom and MTN are not very good companies in Nigeria is to raise all kinds of objection. Unqualified reports may be made about them but measured against Oando oil, a Nigerian oil company involved in merit search for newly coveted oil fields, the two companies above may actually rank lower. Many Nigerians may revile against the indictment but it is actually true. Going as far as US example of high rated companies in Thomas Register, Donnelly List, Standard and Pour on Industries, and the 9 US census bureau, these companies will be at the bottom of the list. But there are other more disaffecting list and ranking system. On the whole, these two companies ‘MTN and Globacom’ do not at least come up with any new product and soft ware for general use, as such they merely copy existing products, manufacture prototypes and much of their profit go into expansion and staff provision, mainly.

Yet again, the monopoly of these companies nearly ‘bleached’ the country dry through the hands off approach to cell phone industry, a condition that remained the backbone of Obasanjo’s disastrous privatization scheme until fairly recently. But of course such companies in Nigeria like the Indian outfit hugging all the actions with the metal industry in Nigeria and raising the price Sky high, would do little to improve their company in Nigeria and much more in creating foreign rates in Nigeria. They are not seriously challenged or dogged in the Nigerian market by others in Nigeria.

This is a vacuum process in Nigerian markets and this vacuum process swallow whole on all avenues of commerce, it indirectly creates a legal case of monopoly and the end result is just high cost in virtually any source of living.



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