Why Naira keeps crashing – Osinbajo | Nigeria News Today. Your online Nigerian Newspaper f

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Acting-President, Yemi Osinbajo has explained that corruption and the vandalization of pipeline facilities in the Niger-Delta region were responsible for the reduction in the volume of Dollar reserved with the Central Bank of Nigeria (CBN).


He said such was responsible for the continuous fall of the Naira against the dollar.

He stated this in Port-Harcourt while chiding members of the opposition who criticize the federal government for the fall of the Naira against the Dollar.


Osinbajo said that Nigerians spent more money to buy Dollars because the currency was scarce and insufficient to go round, triggering the forces of Supply and Demand into play.

He, however, assured that the federal government was putting measures in place to ensure that the diversion of foreign currencies from the National Treasury through corruption, and the vandalization of pipeline facilities that reduce the amount of dollars accruable to the federal government is brought to end, adding that once the federal government is able to earn more Dollars than it is currently earning, the exchange rate will go down.

Osinbajo said: “Some people have said ‘Ah! When you came the exchange rate was this now it is that.’ What accounts for exchange rates is simple. It is Dollars. If you don’t have Dollars, your exchange rate goes up. If you have dollars your exchange rate goes down.

“If you lose oil revenues through corruption and pipeline vandalism, your exchange rate goes up. It’s very simple. If Dollar is scarce, then the Naira to buy it will be more. That’s a simple thing.


“Exchange rate is not magic. It is just the availability of dollars. Once we are able to earn the Dollars the exchange rate will go down. And we are hopeful that all of what we are trying to put in place, and with cooperation of all of us. We’ll be able to bring the exchange rate down.”

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  1. Does it mean that corruption is still endemic in our system? I also thought that crude oil production has risen above 1.6m barrel per day and that the price of crude oil also rose to about $50?
    I just tire for una stories, this time it's no longer GEJ, it's

    ReplyDelete
  2. What news have you been reading can you compare that volume to when we use to be Africa's largest producer let me tell you now that Angola is not Africa's largest producer with all these money stolen and stashed by looters in foreign currency what magic do you expect from our leader I bet you wouldn't even have a clue if given the opportunity. criticism is cheap but being constructive about it is delusional to you

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  3. What news have you been reading can you compare that volume to when we use to be Africa's largest producer let me tell you now that Angola is not Africa's largest producer with all these money stolen and stashed by looters in foreign currency what magic do you expect from our leader I bet you wouldn't even have a clue if given the opportunity. criticism is cheap but being constructive about it is delusional to you

    ReplyDelete
    Replies
    1. Do i blame u? With all the massive looting and corruption being attributed to the past admin, things were not this bad, dollar was around #220 and the price of crude oil was in the neighborhood of $40 per barrel. My question is what changed things so fast in just less than a year? Sanusi accused the present admin of subsidizing forex for its allies and cronies, selling forex to non business men and women who in turn sell to the business community at exorbitant rate, why have we forgotten so soon the sharp practices done by this admin that caused the shortage of forex including the withdrawal of over $80bn by foreign investors as a result of the forex policy that was put in place by this admin?
      Mr Charles, don't be a fool. The decline in oil production was caused by this present admin fight against militants rather than engage them in dialogue and the corruption Osinbajo is talking about is still being perpetrated by men and women of this admin.
      Well, for me, I am holding this present admin responsible for the present economic situation. Why have they refused to convene an economic summit? GEJ did, if they do, all their short comings will be unraveled which they don't want.

      Delete

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