Floating Of Naira Worst Economic Decision—PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has strongly criticized the government’s decision to float the nation’s currency, blaming it for causing immense hardship and economic woes.

PENGASSAN’s President, Engineer Felix Osifo, expressed concerns about the projected rise in the exchange rate, with speculators anticipating the Naira to weaken further against the Dollar. He emphasized that no country fully floats its currency in US Dollars.

Osifo highlighted the abrupt removal of fuel subsidy, stressing the lack of a proper plan to mitigate its impact on the populace, especially in the transportation sector. He suggested providing free bus services to alleviate transportation costs for Nigerians. The underlying issue, Osifo argued, is not solely the removal of fuel subsidy but primarily the fluctuating exchange rate, which has steadily increased over the years.

The current economic turmoil, according to Osifo, stems from the government’s decision to fully float the currency, allowing speculators to dictate market trends. He criticized the parallel market’s influence on official exchange rates, advocating for a unified and regulated exchange rate to counter speculative activities. Additionally, Osifo urged measures to increase the supply of foreign exchange, such as curbing crude oil theft and incentivizing oil production by International Oil Companies (IOCs).

Furthermore, Osifo called for a review of import duties on critical items like spare parts and raw materials to reduce manufacturing costs. He lamented the Customs’ adoption of a higher exchange rate for duty collection, which adversely affects businesses and contributes to rising food prices. Osifo emphasized the need for Customs to prioritize facilitating trade over revenue collection, suggesting that excessive revenue targets hinder economic growth.

In conclusion, PENGASSAN’s critique underscores the detrimental effects of the government’s economic policies, particularly the decision to float the currency without adequate measures to stabilize the exchange rate. Osifo’s insights highlight the interconnectedness of various economic factors and the importance of proactive measures to address Nigeria’s economic challenges.

Source: Vanguard.

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