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CBN new forex policy spikes fuel scarcity anxiety

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Anxiety has gripped motorists and commuters as a new CBN policy on foreign transaction by banks is said to have caused more scarcity of dollars in the system and affected the oil sector.

Reports over the weekend said that some banks were indicted to have sent unacceptable records of their dollar sales to oil marketers, contrary to the policy that users of any hard currencies, who fail to buy dollar at the open interbank market should not be given any preferential treatment.

Investigation show that though the apex bank’s hammer was slammed on five banks allegedly involved in reserving about $500 million for the fuel importers, the apex bank’s order was part of its new approach aimed at checking abuses of the forex market, and which has contributed to distorting the actual value of the local currency, the naira, against other currencies.

However, the new development, which has seen major cities, including Abuja, Lagos and Port Harcourt experiencing return of long queues at filling stations has been, despite the agrrement between oil marketers and the NNPC on Friday that all efforts should be made to sustain stability in the supply chain of fuel at N145 per litre.

A manager at Ejigbo NNPC depot, Mr Yinka Adeyemi, confirmed that more oil marketers, who used to get suppies from independent oil importers had been flooding the government-owned depots.

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“There will be need to look into what is causing the major dealers from importing their products, otherwise scarcity of fuel may hit the country again, soon,” Adeyemi said.

But an official of the Petroleum Products Pricing Regulatory Agency (PPPRA) said though there has been increased pressure on the sector over the dollar scarcity, the agency had fixed the ex-depot price at between N123.28 and N133.28 per litre for the product at depot, depending on location.

However, he said some oil majors, including: Forte Oil, Total, Mobil, Conoil, MRS and Oando, were still loading petrol at government’s approved ex-depot price.

To the PPPRA, there is no going back to be scarcity of the products.

But, Isaac Okoroafor, CBN information manager said what his bank had done was to ask commercial banks to back their documents on foreign transaction with proof of dealership.

“No bank is under any probe over foreign exchange transaction,” he said.

It was, however, gathered that major oil marketers have said they will not sell the product to other marketers lower than the price they imported their products.

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0 Comments

  1. Roland Uchendu Pele

    January 30, 2017 at 11:11 am

    No matter how much carefulness or attention CBN would give to the use and circulation of Dollar by the commercial Banks, there must be cases of subverting the policy for selfish gains. The country already lives so lawlessly, nothing can be done to keep our sanity in all sectors!

  2. JOHNSON PETER

    January 30, 2017 at 12:48 pm

    It is high time we scraped bureau de change and make commercial banks the only authorised institutions to sell dollar at the official rate , so we can forget about this issue of open interbank market.

    • seyi jelili

      January 30, 2017 at 1:03 pm

      It is not possible because there is an illegal business that the bureau de change, CBN and commercial banks are into to enrich themselves via this dollar exchange rate
      The bureau de change have good percentage of money they give banks when they exchange dollar from them beyond the official rate and banks know if they are to sell it officially to you and I, it won’t pay them as they won’t have any additional money from ordinary citizens like us.
      The country is extremely corrupt, it is God who can put things in place and not Buhari.

  3. Animashaun Ayodeji

    January 30, 2017 at 2:16 pm

    This is the only thing the CBN is known for, to make life harder for the masses and to make businesses unfavorable for businessmen is even not left out. If Emefiele and his people at CBN cannot make policies that will favour the masses, there’s no point for them to remain up there. Buhari should replace them with capable hands. We need to start seeing positive results in Nigeria not consistent and unchanging harsh policies!

  4. Margret Dickson

    January 30, 2017 at 2:23 pm

    The CBN should review whatever policy they made that will soon be causing fuel scarcity. Nigerians are not ready for another round of fuel scarcity. It is important to remind CBN that fuel is expensive and there’s no need for further increment because, by the time scarcity hits the Nation, fuel will become more expensive. It’s high-time we knew Nigeria needs to move forward, not backward, the policy should be scrapped.

    • Nonso Ezeugo

      January 30, 2017 at 9:00 pm

      Our government should mind what they say with there mouth and bring fuel to a chipper rate

  5. yanju omotodun

    January 30, 2017 at 2:24 pm

    Hitherto, we still laugh in pains in Nigeria as the economy is getting so pathetic day by day. CBN inflicts the masses with hardship, PHCN inflict the masses with blackout, Ministry of finance inflicts pains on the masses with clueless policies, PPPRA inflicts hardship on the masses with a move to hike fuel price, Buhari is inflicting uncertainities on the masses with the rumours of his death to know the way forward and finally, Dollar is inflicting pain on naira with the worthlessness of naira.
    Na wa.

    • chichi emerue

      January 30, 2017 at 8:56 pm

      Buhari is just deceiving himself with all this that is happening.buhari has really makes everything an hot cake and we the Nigerians are not happy with that

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