A Market Advice for President Jonathan Goodluck (I)

By

Sampson Iroabuchi Onwuka

High Tariffs in any industry in Nigeria inadvertently trigger high cost of products in many parts of the local economy. The pressure to sale at a higher return is due to the cost of getting the products to the market place in first place. There is a ‘vacuum system’ in the country that makes it difficult for small business to make vital gains in Nigeria. This vacuum system revolves around the Ports authority, the monopoly of certain good through exorbitant high tariff which extend from the docking areas through Customs to business to business and then the general public who must pay despite the fixed income.

The direct control of key industries in Nigeria by strikingly few merchants, force an unnecessary price escalation - a classic case on Adam Smith on Nigerian depression economy. The Nigerian President, Jonathan Goodluck, should look to slashing high Tariff - I mean all forms of Tariff incentive by at least 49% on year end. He should set up a simple committee to see this happen in matter of weeks. Should such Customs’ Act fail to pass in the coming months, the country should brace for extended occasions of strike if not for high inflationary pressure from newer Tariffs but for political reasons commensurate to elections 2011.

Nigerian is a ‘one crop economy’. Crude oil is Nigeria’s only bait in the world markets and in terms of import making a noise for the country, the country is struggling ‘Third’ at it. World Bank called Nigeria the most expensive business community largely due to the price on Tariff alone. The argument that certain embargo will help local production does not take into account the ever expanding Nigerian demographics. With the depreciating Nigerian power of purchase baited against the wholesale failures of small business in states other than Lagos and Abuja -there are serious depression economy indicators which the Nigerian President should take seriously. For nothing could add to this problem than a rising and very exorbitant cost of what we need.