Nigeria’s $36.4bn fuel importation cost devalued naira — CBN

The Central Bank of Nigeria (CBN) has said the $36.37bn Federal Government spent on the importation of petroleum products between 2013 and 2017 greatly contributed to the devaluation of the nation’s currency.

The amount, representing 13.5 percent of the total sum, was part of the $119.41bn spent by the country on the total importation of commodities into the country in the same period.

The apex bank made this known in Abuja during a public hearing organized by the House of Representatives’ Ad-hoc Committee investigating the state of the nation’s four refineries, their Turn Around Maintenance (TAM) to date and regular/modular licensed refineries.

Speaking on behalf of the bank, Director in Charge of Research, Mr. Ganiyu Amao, said the high spending had negatively affected the nation’s foreign reserves and has greatly depreciated naira currency as the bank could not provide enough forex at the foreign exchange market.

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According to him, “Data from the CBN show that from 2013 to 2017, a total of foreign exchange committed to imports in the country stood at $119.409 billion, representing 13.5 percent of all imports made by the country.

“It greatly exerts serious pressure on our external reserves and depreciates the value of our local currency.”
Meanwhile, the Committee has given management of the Nigerian Petroleum Corporation (NNPC) a 24-hour ultimatum to provide all relevant information on the installed capacity, volume of crude supply and output, and the TAM of the four refineries.

Chairman of the Ad-hoc Committee, Dattin Muhammad (APC, Kaduna) and other members of the panel expressed displeasure over inability of NNPC to make important documents of such kind available.

The panel, however, stated that it is not unaware of efforts being made by some of the stakeholders to frustrate the panel by holding back on some important documents needed for the investigation.

By Oluwasegun Olakoyenikan…

 

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