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…Urges FG to address exchange rate
By Oluseye Ojo
The Yoruba socio-political organisation, Afenifere, has condemned emerging fuel scarcity in Lagos and various parts of Nigeria.
The organisation called on the Federal Government to take immediate action and bring the value of the naira closer to that of the dollar in terms of exchange rates.
The publicity secretary of Afenifere, Mogaji Gboyega Adejumo, described the ongoing scarcity of Premium Motor Spirit (PMS) as a result of the negligence and disregard of crucial factors by the current administration.
He contended that the fuel scarcity might be artificially created as a prelude to potential fuel price hikes. He also believed it could be a consequence of reduced gasoline imports, prior to the anticipated launch of PMS by local refineries into the Nigerian market within the next one week.
According to Adejumo, petroleum product prices are heavily influenced by foreign exchange rates. Therefore, he suggested that bringing the value of the naira closer to the dollar, specifically at a rate of N500 to US$1, would alleviate the situation.
Afenifere also expressed concern over the excessive borrowing by the government and emphasised the need for the public’s confidence in the local currency. They believe that boosting the value of the naira would encourage those who have been hoarding dollars to spend them.
Adejumo said: “Afenifere is not happy about any increment in fuel pump price. Of course, nobody is going to be happy with increase in prices of petroleum products.
“I can say that the current situation is due to the flippancy of the Federal Government and what I will call negelect of vital indices. It was a flippant move to suddenly announce removal of fuel subsidy. We know that subsidy is at the mercy of foreign exchange rates. We know that our naira is weak.
“When former president, Dr. Goodluck Jonathan, was in power, the subsidy was N61 per litre. During the administration of former president Muhammadu Buhari, the subsidy was N200 per litre. But now under President Bola Tinubu, the landing cost of petrol is more than N1000. But the PMS is still being sold around N600 per litre. In a month, this government is paying subsidy in trillions of naira.
“As at the time former President Buhari was leaving, the exchange rate between naira and dollar was N460 to US$1. But now it is N1300 to US$1. There was even a time that it went up to N1900 to UD$1.”
