NYFA LEADERS' WEEKEND DIGEST

A TALE OF TWO ERAS: WHEN GRANDNUT OIL MINDED ITS BUSINESS VS WHEN IT STANDS ON TINUBU'S MANDATE

The Nigerian economy has faced significant challenges in recent years, with many attributing these issues to failed leadership and bad economic policies. A comparative analysis of the prices of essential commodities during the period of relative economic stability (1999-2007) and the present day reveals a stark contrast.

The Devastating Impact of Poor Management and Bad Economy

The implications of poor management and bad economy are multifaceted and far-reaching. The lack of effective economic policies has led to a significant decline in the standard of living, with many Nigerians struggling to afford basic necessities. According to the World Bank, over 56% of Nigerians live in poverty, equivalent to approximately 139 million people. Furthermore, 27% of Nigerians can not afford a healthy meal even if they spend all their income on food.

A Comparative Analysis of Groundnut Oil Prices

A comparison of the prices of groundnut oil during the period of 2006-2007 and the present day is illuminating. In 2006-2007, 20 litres of groundnut oil cost approximately N57.85 and N65, respectively. Fast-forward to 2023, the same quantity of groundnut oil costs N20,000, and as of today, a staggering N60,000.

Upper End Comparison Increase Index

- 2023: N20,000 (approximate price of 20 litres of groundnut oil)

- 2025: N60,000 (approximate price of 20 litres of groundnut oil)

- Percentage increase from 2023 to 2025: 200 per cent

- Projected 2027: N120,000 (assuming a 100 per cent increase from 2025)

- Projected 2031 (if the trend continues for 8 years): N480,000 (assuming a 300 per cent increase from 2027)

Lower End Comparison Increase Index

- 2006-2007: N57.85 and N65 (approximate price of 20 litres of groundnut oil)

- 2023: N20,000 (approximate price of 20 litres of groundnut oil)

- 2025: N60,000 (approximate price of 20 litres of groundnut oil)

- Percentage increase from 2006-2007 to 2025:

- Using N57.85: approximately 103,471 per cent

- Using N65: approximately 92,215 per cent

- Percentage increase from 2023 to 2025: 200 per cent

- Projected 2027: N120,000 (assuming a 100 per cent increase from 2025)

- Projected 2031 (if the trend continues for 8 years): N360,000 (assuming a 200 per cent increase from 2027)

Conclusion

The persistent increase in prices of essential commodities, including groundnut oil, is a stark reminder of the failures of economic management in Nigeria. The staggering increase in prices, from N57.85-N65 in 2006-2007 to N60,000 in 2025, represents a percentage increase of over 92,000 per cent. With over 139 million Nigerians living in poverty, it is imperative that policymakers adopt effective economic policies, prioritise transparency and accountability and ensure sustainable development to mitigate the effects of poor management and bad economy on the Nigerian people.

 TEAM nBAU