This has made it difficult for firms to pass their marginal cost of production on to sales prices, generating constant downward pressure on profit margins and wages. Consequently, firms, supermarkets, and large discount stores have begun to set their sales prices according to their competitors’ and clients’ demand, rather than in response to the output gap or cost developments.
We firmly believe that with the sustenance of the reforms as the CBN is determined to, the best is yet to come. II:  Springbank and challenge of re-capitalization. At the conclusion of the recapitalization exercise in early 2006, I announced that the CBN would undertake post-consolidation re-verification of capital.