A Nigerian Price-War Drama

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Recently, social media in Nigeria went agog over a price-war drama. What actually happened was that a popular human rights activist/businessman known as VDM called out a well-known serial entrepreneur known as Blord. The issue arose when Blord advertised on his social media page a refurbished iPhone XR, claiming it's a brand-new iPhone 17 Pro/Pro Max.

According to Blord, all components of the iPhone XR have been upgraded to that of the latest Apple flagship, the iPhone 17. Although the phone looked nothing like the iPhone XR, trouble soon began when Blord stated the refurbished phones were going for four hundred and fifty thousand Naira as against two hundred and ten to two hundred and eighty thousand naira, its original price.

VDM, being an activist, a social media critic, and a businessman, wasn't having it. He soon blew the whistle on Blord's mischievous scheme as he warned Nigerians to be wary, stating the actual amount of the phone to be a maximum of two hundred and eighty thousand Naira only.

Exposing further, VDM informed that the only refurbished component of the iPhones that Blord advertised was the case, as the internal components were still those of the iPhone XR. To further prove his allegations were the truth, VDM was in China at the time, and he visited a Chinese Apple store, requesting them to refurbish some packs of iPhone XR that he was holding.

It is worth noting that VDM didn't stop there; he went further to probe other items that Blord had up for sale, like luxury cars, and it was discovered that even the cars were marked up by 100% profit. It was indeed an uproar, which saw VDM declaring his intention to venture into the gadget market and open the biggest warehouse in Nigeria. According to VDM, he wants to create a competitive market where gadgets can be sold at a fair price.

Soon, we started seeing some gadget sellers reduce the cost of their iPhones, and of course, it was such a delight for the masses. While VDM's actions are commendable, I see it as noise, a social media frenzy, because VDM's intentions are not sustainable. The Nigeria market is very volatile, and the cost of doing business is equally high.

Every business owner in Nigeria is living in double jeopardy; whether you are a local producer or an importer, the only way out is a price hike to survive the harsh economic policies and living conditions of the country.

The challenge is, if one is not dealing with militant youths who always come to task for development levy, they will deal with the electrical distribution company whose power supply is not 100% reliable. And when one would think that they've got all situations under control, there is the government actively sabotaging the business environment with their poor economic policies, which creates unforeseen circumstances that threaten the process of one's business.

There was a time that people were calling for the government to regulate the price of gas/petrol, which was quite funny because these are imported products with the marketers bearing the lion's share of the cost.

It really doesn't make sense that the government would want to regulate prices when they've not created a stable market or an enabling environment for businesses to thrive. I remember when the recent president was sworn in and in his inaugural speech he announced the total removal of fuel subsidy which introduced us to over a 100% price hike that we are suffering today.

The thing is, people need to be sure that whatever they are selling at would be able to buy them a replacement product so that they can continue in business. For a country like Nigeria, a 50% profit is fair as this will enable businesses withstand the inflationary shock resulting from government sabotage.

Imagine securing your produce at the rate of, say, three thousand Naira per unit price, and then there are people expecting you to sell at three thousand one hundred Naira without considering the extra cost of doing business, and also your profit margin to remain in business. You know we are all experts until we enter the market.

It is a fact that every business person is in business to make a profit, and quite unfortunately so, there are business people who take advantage of the consumers, but then that's why it's business; it's really never static, as there would always be another businessman offering what each individual can afford.