Development Economist, Prof. Ken Ife, has said some sectors may soon likely witness a drop in prices as the naira appreciates against the dollar.
Ife said this in an interview with the News Agency of Nigeria (NAN) in Abuja, yesterday.
He said the sectors likely to witness a decrease in prices included the sectors strongly dependent on transport, diesel, and imported items.
“Imported food has to be transported across the country, so they are heavily dependent on the high cost of transportation.
“But that will come down because diesel is what is used to run the buses and trucks that transport these foods across the country.
“So they will come down because the average price of diesel has come down to N1,000 from N1,800 and it may come down further. So that seems to be putting down prices of the dependent products.”
Ife, also a public policy analyst, said that energy-dependent operations were also going to be influenced as the naira appreciates against the dollar.
“Forex affects energy costs as well. So the manufacturers that use diesel to run their generators, their prices will come down a bit.
“At the same time, you know forex is also bringing down the prices of imported goods which are highly inflationary.”
