Nyesom Wike, the Minister of the Federal Capital Territory (FCT), has shared his perspective on the ongoing concerns regarding the rising cost of living in Nigeria. He downplayed the issue, arguing that focusing on price hikes is not the right approach. Instead, he pointed to the low purchasing power of investors as the real problem, which is being worsened by the current economic conditions. According to him, price increases have always been a part of the country’s history, and Nigerians should not dwell on them.
In a video from 04:13, Wike emphasized that Nigeria operates within a capitalist framework, where market forces naturally dictate prices. He argued that the government, while capable of implementing regulations, cannot fully control these processes. This means that fluctuations in prices are often beyond the government’s ability to manage comprehensively, and are instead shaped by broader market trends. The minister suggested that everyone, including the wealthy, is impacted by high costs, making it a shared burden.
In his view, the ongoing complaints about the high cost of living are not unique to this period, as Nigerians have always expressed dissatisfaction with rising prices. He recalled personal experiences from his past when rent and living expenses were considered exorbitant. However, despite these historical grievances, he believes that the issue today is primarily linked to the weakened purchasing power, particularly for investors, rather than simply the cost of goods and services.
Wike further rejected the notion that regulating specific prices, such as rent for housing, is a viable solution. He stressed that price control is not feasible in a capitalist economy like Nigeria’s, where the forces of demand and supply play a significant role in setting prices. Interventions from the government, while helpful in certain areas, cannot entirely override the market’s influence on pricing.
The minister also highlighted that the high cost of living is a global phenomenon and not limited to Nigeria alone. He urged Nigerians to focus on adapting to market realities instead of constantly attributing blame to the economic system. While acknowledging the challenges faced by citizens, Wike maintained that economic adjustment is necessary for everyone in a capitalist system.
Wike reiterated his belief that market-driven economies like Nigeria’s naturally experience price fluctuations. While government regulations can provide some relief, they cannot entirely prevent these shifts. He called for a broader understanding of how market dynamics shape the economy, emphasizing the need for adaptation rather than constant criticism of rising costs.
He said, “I don’t agree with people about all increases in everything today. So that should not be the issue that you want us to make the more to say that a two-bedroom flat should not be more than N50,000 for example or N100,000. I don’t think that’s the problem now.
The purchasing power is very low for investors because of economic effect on us. I don’t agree with Nigerians saying that the cost of living is high. I don’t sincerely agree with that. There’s never been a time that Nigerians never complained about increasing rates.”