Oil marketers, represented by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), have made a plea to President Bola Tinubu to fix the exchange rate of the Naira to the Dollar at the 2024 Budget benchmark of N750/dollar.
Mr. Benneth Korie, the President of NOGASA, conveyed this message to journalists in Abuja, emphasizing that the constant devaluation of the Naira against the dollar is a significant factor contributing to Nigeria’s economic challenges.
Korie opposed the free floating of the local currency, suggesting that the government must take decisive action in managing the foreign exchange market to prevent further depreciation.
He pointed out that the escalating cost of the dollar is driving marketers out of the industry, warning that without immediate intervention, many petrol stations could cease operations before the end of March.
Korie highlighted the importance of reverting to the N750/$ exchange rate stated in the budget, citing the potential consequences of unchecked currency depreciation on various sectors, including food prices.
Furthermore, he referenced the recent withdrawal of services by the National Association of Road Transport Owners (NARTO), attributing it to the exorbitant cost of diesel, which affects the transportation of petroleum products.
In terms of policy recommendations, Korie urged the government to reassess the deregulation policy, suggesting the reintroduction of the petroleum equalisation fund (bridging) to alleviate the financial burden on marketers and consumers.
He reasoned that while subsidies may not be feasible, implementing bridging could mitigate the hardships faced by the industry and reduce transport costs, thereby providing relief to both operators and consumers alike.