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Naira May Fall To N700 Per Dollar Over Oil Theft, Low Export – NACCIMA, Economists

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To stem the steady fall of the naira against the dollar, the Federal Government has been advised to as a matter of urgency put an end to the festering crude oil theft, boost oil production, and put in place necessary measures to boost local production and exportation of other goods.

Some economists told our correspondent in an interview on Saturday that these were needed to boost the country’s foreign exchange earnings and bridge the supply deficit.

The Association of Chambers of Commerce, Industry, Mines, and Agriculture however warned that if nothing was done urgently, the naira might fall to about N700 to a dollar.

Manufacturers, business owners, and many Nigerians have expressed deep worries over the value of the naira, which exchanged for as high as N590 in the parallel market a few days ago. While the official rate stood at N416.23, findings from different sources on Saturday evening showed that the naira had fallen to an unprecedented N600 to a dollar.

Coupled with the 15.7 percent inflation rate, the lingering forex crisis has led to a considerable increase in the prices of goods in the country.

The MD/CEO, Cowry Asset Management, Mr. Johnson Chukwu, said naira had continued to suffer a free fall because of weak foreign exchange earnings, due partly to the low crude oil production, crude oil theft, and low export of goods.

He said, “It’s all about how much you spend on importation compared to how much you earn from exportation. We are not producing enough so we don’t have enough resources to support the naira.

“The immediate solution is to stop crude oil theft so we can make more revenue, and the long term solution would be to diversify our economy so that we can produce more exportable commodities or produce more of what we consume to limit our importation.”

He said the Central Bank of Nigeria’s interventions, like the closure of Abokifx and the ban on the sale of forex to Bureau De Change, could not bring down the price because the current price was a product of demand and supply.

Also, the President, National Association of Chambers of Commerce, Industry, Mines and Agriculture, Ide Udeagbala, said critical infrastructure like power should be fixed to boost local production of goods, both for local consumption and export.

He said, “The exchange rate could get to between N600 and N700 to a dollar with the way it’s going, as long as we are not exporting and we import almost everything. However, how do we talk about production when there is no electricity? The national grid collapsed twice two weeks ago and people had to buy diesel at N700.

“So, the solution is that we must produce enough for export to earn forex. Crude oil theft is also an issue. If we are expected to produce two million barrels per day and today we are at 1.3 million BPD, is it difficult to know why we are here?

Also, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said apart from addressing crude oil theft and boosting production, the government should consider a flexible exchange rate policy regime, different from devaluation.

He stated, “This model would enhance liquidity in the foreign exchange market, reduce uncertainty in the forex market and enhance investors’ confidence. Also, it is a more transparent mechanism for forex allocation, it minimizes discretion in the allocation of forex and reduces opportunities for round-tripping and other sharp practices.”

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Michael Abimboye Speaks On Food Items, Palliative To Ode-Omu Residents

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  • “Why we target aged, widows, and other vulnerables. Here is what this got to do with Governor Ademola Adeleke.”

 

Michael Abimboye, a Nigerian political communication consultant and journalist, has supported Osun Governor Ademola Adeleke’s palliative measures through the distribution of food items to residents of Ode-Omu communities in Ayedaade Local Government Area of the State.

Abimboye, who distributed the food items on Friday, September 6, said the Osun government has in the last few months, shown a high sense of responsibility through its commitment to alleviating the suffering of the masses.

In June, Adeleke-led government distributed rice palliative under the State Government Food Security Program in a bid to alleviate food scarcity and ensure food security. The distribution targeted a wide array of registered groups to ensure that the palliative reaches diverse segments of the population.

Among the beneficiaries are Labour Unions, the Inter-Party Advisory Council (IPAC), Civil Society Organizations, the Union of Pensioners, various Security Outfits, Ministries, Departments and Agencies (MDAs), Religious Associations, Market Unions, and Persons with Disabilities (PWDs), among other registered associations.

Before then, Adeleke rolled out free medical outreach in the state as palliative to cushion the effect of high cost of living. The Imole free medical outreach took place in Ilesa, Ile-Ife, Ede, Iwo, Ila, and Osogbo.

On his part, Abimboye, who is following the political footprint of Adeleke in Odeomu through the distribution of food items, emphasised the importance of the palliatives in mitigating the effects of food insecurity exacerbated by various socio-economic challenges.

“The governor has laid down a very good foundation, and the best we can do is to support his initiative. I am distributing palliatives in Ode-omu and its environs as part of my commitments to supporting the most vulnerable in our society,” he stated. “The economic situation in the country is terrible, and the little we can do for our people is to ensure that essential food items are accessible to provide relief and promote stability.”

“We’ve looked out for the aged, widows, and other vulnerables. Our goal is to ensure that they don’t beg to put food on their tables. Adeleke’s government has shown that it’s ready to address food insecurity, and the best I can do to support the state governor is to echo his proactive measures.

“I have come to distribute the food items myself because I want the beneficiaries to be those who really need them and would make judicious use of the palliatives,” Abimboye said.

He also urged other indigenes of Osun at home and in diaspora to continue to support the governor’s strides towards leading Osun to a promised land and eradicate poverty in the state.

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BREAKING: DSS Takes Over SERAP Abuja Office

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The Abuja office of the Socio-Economic Rights and Accountability Project (SERAP) has been taken over by officers from the Department of State Services (DSS).

In a statement released on Monday, SERAP denounced the action as an “unlawful occupation.”

The statement revealed that the DSS officers are demanding a meeting with SERAP’s directors.

“President Tinubu must immediately direct the SSS to end the harassment, intimidation and attack on the rights of Nigerians,” SERAP urged.

This is coming barely 24 hours after the organisation urged Tinubu to leverage his leadership and authority to instruct the Nigerian National Petroleum Company Limited (NNPCL) to promptly reverse the seemingly illegal and unconstitutional hike in the pump price of premium motor spirit, commonly known as petrol, at its retail outlets.

 

More to come…

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BREAKING: NLC Begins Closed-Door Meeting Over Ajaero’s Arrest

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The Nigeria Labour Congress (NLC) has convened a closed-door meeting following the detention of its President, Joe Ajaero, by the Nigerian government.

NLC’s Head of Public Relations, Benson Upah, confirmed the meeting on Monday.

Upah stated that Ajaero was seized by agents of the Nigerian State without a legal warrant or formal instrument.

Furthermore, Upah expressed concern that Ajaero’s whereabouts and health status remain unknown.

The NLC has condemned the detention as a “brazen act of lawlessness and intimidation” and demanded Ajaero’s immediate and unconditional release.

“The Congress has also called on the international community, human rights organizations, and democracy advocates to take note of the rising wave of authoritarianism in Nigeria.”

Ajaero was set to address the Trade Union Congress in the UK on behalf of Nigerian workers, discussing critical issues like workers’ rights, social justice, and economic fairness.

Upah said, “The NLC has put its affiliates, state councils, and civil society allies on high alert and vowed to protect workers’ rights and not be cowed by oppressive tactics.

“The Congress is currently holding a closed-door meeting to discuss the situation, and the outcome will be made public soon.”

 

More to come…

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