Peg forex rate at N750/dollar, oil marketers beg Tinubu - NEWS FRONTIER DAILY


Tuesday, February 20, 2024

Peg forex rate at N750/dollar, oil marketers beg Tinubu

Oil marketers under the aegis of the Natural Oil and Gas Suppliers Association of Nigeria, NOGASA, have pleaded with President Bola Tinubu to peg the exchange rate of the Naira to the Dollar at the 2024 Budget benchmark of N750/dollar. 

NOGASA President, Mr. Benneth Korie told journalists in Abuja constant devaluation of the Naira against the dollar was at the heart of Nigeria’s economic challenges. 

Korie, who kicked against the free floating of the local currency, said the government must be bold in its handling of the foreign exchange market to halt the present slide.

He explained that the high cost of the dollar was pushing marketers out of the industry, adding that if urgent steps were not taken most petrol stations would shut before the end of March.

“I know our budget this year was benchmarked at N750/$, so if the government can maintain it at 750/$ heaven will not fall, inflow or no inflow. It is not the first time we are seeing prices at N400 and they are selling for N800, so let's go back and try it, because if we allow this to continue, the dollar may get to what we cannot handle. Now all our food will be sold at dollar rate if care is not taken. So let us go back to N750 as it was stated in the budget.

“You are aware of NARTO withdrawing their services. It is as a result of this high cost of diesel, you cannot go to Lagos to bring pms to the north with N1,700 cost of diesel, it is not possible, it is a suicide mission, nobody will make 1kobo, so that NARTO struggle is OK”. 

He urged the government to take another look at the deregulation policy as it was not working as envisaged.

“If the government feels they cannot provide subsidies, they can bring the bridging (petroleum equalisation fund) back to the system so that it will reduce the rate, the hardship, because it will help. 

“We understand that over some trillion has been spent on subsidies, so there is nothing bad if we introduce bridging and it will not take up to one quarter of that and it will reduce pressure on transport cost”, he added.

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