A Market Advice for President Jonathan Goodluck (II)

Given the inflationary pressure from High Tariff and high unemployment in many parts of the country, given the little or no credit from Banks, the country cannot escape slow or insignificant growth for small businesses. Given the high numbers of unemployment in Nigeria and estranged condition of the Nigerian fixed income earners, there is no telling how disaffected and disfranchised Nigerian Laborers are and whether they can survive the unconditional vacuum system. There is ‘vacuum system’ of course in Nigeria, a process which involves protection of certain rights with high tariffs, which inadvertently destroy any comfort for long term investment and therefore cur for inflationary pressures.

For instance, when Nigerians pay so much for GSM products, for SMS connection or software, it reverts to overall high price which injure the local fixed income earners. High price market is seriously expensive for local businesses but cheap for foreign investors many of them demand repatriation in Dollars for profit made through the profit. So this is where the pun begins in Nigeria, we need cell phones but not have to any price for it. Above all, we should not have to take the rate that is only commensurate with dollar minded market. Given the dependency ratio of Nigerians on cell phones and the problems of fixed income of the many Nigerians, It is save to conclude that against a depreciating Nigerian Naira, Nigerians are paying far too much for the ordinary cell phone use, irrespective of the reduction in Tariff. It also makes Nigeria a very expensive cell phone industry….one of the most expensive in the world.

We can estimate the market demand of real effect of high phone call in Nigeria, the use of cell phones in Nigeria make cell phone call a derivative of the general pull on demand. Demand may by itself be a sensitive barometer in testing the range of pressure to buy a product that we don’t already have, but it is steady bait against. This can easily result in paying too much for essential needs of the society. You can it a ‘Want’ category, a market of self interest, and the product under this condition drives the market.