PBA ReporterThe National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu, has disclosed the cause of forex scarcity in the country.
Chinedu who made this known in an interview with Punch Newspaper said massive imports of Premium Motor Spirit, popularly called petrol, using the United States dollar, will continue to put pressure on the naira and cause a further devaluation of the local currency.
HE said: One particular thing that should be made clear as regards this issue is the rate of the United States dollar against the naira.
“If you look at the rate of the dollar today, it is over N600 to one dollar at the parallel or black market and whatever affects this market also affects the purchasing power and the rate of consumption.
“If the dollar is over N600 at the black market and up till now Nigeria is still heavily dependent on the importation of petroleum products, things will be difficult for us in this aspect.
“Nigeria is depending heavily on the importation of petroleum products, all the refineries are not yet working despite several promises by government that the plants will start production.
“The value of the naira is depreciating daily, so what do you expect? Nigeria will continue to subsidise petroleum products and that is static at the moment and based on this, our naira will continue to be devalued, because so much dollars are just being deployed in pursuing products.
“The products we buy here in Nigeria are purchased in naira, and not in dollar; but we use the dollar to make payment for imported products. So when the government subsidises the products, that subsidy is at who’s expense?
“It is a way of devaluing the naira, because our naira today is over N600 to one dollar, the local currency does not have strength anymore and this calls for serious concern.
“We really need to look at how to curtail this fall of the naira and reducing the massive import of petrol with our scarce foreign exchange is one major way of doing that.
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