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Opinion

The unholy tact of a hyperinflation in a holy month

Each year for thirty days Muslims fast in a month called Ramadan, Muslim faithfuls in this month abstain from food and drink from dawn until sunset. The month of Ramadan is the ninth month of the lunar calendar; it is a holy month and is regarded as the “month of the Qur’an” by Muslims. However something peculiar happens in this month every year, there’s always a hyperinflation. When the prices of goods and services rise uncontrollably under a defined time period, that’s hyperinflation, therefore it is a rapid inflation.

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According to a research there was an estimated sharper increase in headline inflation to 17.27% in February up from 16.47% in January of 2021. Food and core sub-indices are expected to move in tandem with the headline inflation. Food prices is said to have been the primary driver of inflation rising to 21.98% in February. The impact was felt in March. It is a norm that there is an increase in food prices in the Month of Ramadan, producers and suppliers anticipate the rise in consumer demands and then “happily pump up” prices of goods.

Newspaper headlines during the week carried a story of the richest man in Africa suing BUA over allegations of policy breach, Dangote had sent a letter to the Minister of Industry, Trade and Investment alleging that establishment of sugar plant by BUA International Limited in Porthacourt free trade zone was not in compliance with export laws. Unconfirmed reports however stated that Dangote and Flour Mills were actually “fighting” BUA over refusal to increase the price of sugar during the Ramadan period and that the “policy” talks were just a smoke screen. Undue and unwarranted increase such as this always made them smile to the bank and made their accounts “utterly out of shape” in the past. Last year a bag of sugar had gone from 18,000 to 30,000 during Ramadan.

Due to an increasing rate of insecurity, a price control policy that was abandoned more than thirty years ago and an increasing rate of poverty and unemployment, the customary hyperinflation in the Month of Ramadan is hitting people on “a different level” in 2021. Traders in markets are complaining of very low sales and the customers decry very high prices in goods. Even though Nigeria have seen a steady increase in prices of goods since the border closure and due to the covid19 pandemic, the Ramadan period always has its “special increase” in price of goods every year. People are hardly able to buy food with an increasing inflation on the economy; hyperinflation keeps the poor wishing “it would rain food all of a sudden”.

From Africa to the Middle East and Asia, the same story resonates amongst the consumers and that is; prices of food skyrocket during Ramadan. Fruits, vegetables, rice and sugar are commodities that see higher demand in this period and they see the most increase in prices. Most workers’ salaries do not last through to the next pay check which means most will not be able to afford stock their houses with food before the end of the month. Traders are always of the opinion that they are not just increasing the prices on their own but that the increase always comes from the producers and wholesalers.

We are well aware of the problems of poverty and the fate of the working class and the society; we also know that the government play an important role in relieving this problem. The sad part of this reality is that some of those producers and suppliers who carry out this inhumane behaviour are Muslims and they know fully well that this month is a “Month of mercy” and Muslims have also been instructed to increase their charity in Ramadan. Such marketers are not engaging in charity neither have they spared their fellow humans the dark side of capitalism.

Inflation at whatever period of time should be contained by the government, price control is very important for a market such as the Nigerian market. Nigerians have continually shown a high sense of greed and “get rich quick syndrome”, marketers will jump on every opportunity to exploit consumers and strict price control by the government is the best solution the government can work with. Muslim clerics should also preach humanity and pity to the people, they must understand that Ramadan is not a money making venture but a month long of reflection and repentance. People should not panic buy goods in Ramadan to ease the rate of demand hence not giving marketers a reason to inflate prices of goods.

We are taught by Islam to be kind to one another, charity is strongly prescribed. Ramadan is a period when we abstain from food and drink to feed our soul; we fix our relationship with Allah and struggle to build our iman. We must remember however that if our relationship with the people is bad then we cannot truly fix our relationship with the Almighty. Each and every one of us must know that “we are all in this together”, the man who sells rice might have to buy tomatoes and one that sells fish will buy fruits. In the spirit of Ramadan and for the sake of Allah hyperinflation in Ramadan has to become history.

Halima Imam
Twitter: @sadee_eemam
[email protected]

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