Forex crisis: Nothing for Nigeria as our crude oil sold in advance – NGF

Kwara State Governor AbdulRahman AbdulRazaq and chairman of the Nigeria Governors’ Forum (NGF) has called for patience over the ongoing economic hardships being experienced in the country. The governor said this during a briefing in Ilorin with different segments of the state on efforts of the government to ease things for the people.  The sessions, […]

Kwara State Governor AbdulRahman AbdulRazaq and chairman of the Nigeria Governors’ Forum (NGF) has called for patience over the ongoing economic hardships being experienced in the country.

The governor said this during a briefing in Ilorin with different segments of the state on efforts of the government to ease things for the people. 

The sessions, which lasted for hours, involved labour union leaders from the transport, artisans, market unions and students drawn from various backgrounds in the state.

In a statement signed by Rafiu Ajakaye, Chief Press Secretary to the Governor, AbdulRazaq said that different federal government committees are working round the clock to plug the spiraling fall in the value of the naira and its impacts on consumer goods.

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According to him, “We (governors) held a meeting on Tuesday afternoon which I joined through zoom, and it is a continuation of previous meetings. The government is launching programmes to checkmate the rising food prices.

“Our major problem is foreign exchange. We are getting US dollars from sales of crude oil, whereas we have low sales at the moment. We used to experience pipeline vandalism. 

“But since the assumption of Tinubu’s government, production of oil has increased. Not only that, the government realised recently that the crude oil we are, and will be getting in the next six months or so had been sold in advance. So, they don’t get value for whatever they are selling now. But gradually, things will change and we need your support to understand us,” he added.  

AbdulRazaq said the government is immediately working to force down the cost of key staple foods by releasing grains from the strategic reserve and distributing the same to the people at intervals. 

The devaluation of the naira, the Governor noted “meant that merchants from neighbouring countries are mopping up grains from Nigeria.

“This is because it is far cheaper to buy from the country and then resell at higher prices in their own countries, especially in the West African sub-region”. 

Acknowledging the spike in inflation, he urged the people to be patient adding that the government’s investments in gas-powered vehicles will manifest after their distribution in the coming months.