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Naira Depreciation: CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country – Minister

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7 months ago

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Mohammed Idris
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The Minister of Information and National Orientation, Mohammed Idris, has said that the Central Bank of Nigeria’s efforts to reform the foreign exchange (FX) market have been met with ferocious resistance from speculators and other unscrupulous players.

 

Addressing a press conference today, February 23, Idris said the bold moves being implemented are in full alignment with what is required. He also said that relevant regulatory and security agencies have been directed to remain vigilant to ensure that malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book.

 

He said;

 

“We understand that these are foundational fiscal and monetary policy moves, upon which we must now build the superstructure of true economic growth and prosperity.

“As respected economists and experts have acknowledged, these foundational reforms will be difficult and painful for Nigerians in the short-term. At the same time, there is the consensus that they are inevitable, given just how much they have held back robust and lasting economic growth.

“The problems that we are solving are no doubt multifaceted, intertwined, and deep-rooted, requiring creative, strategic, decisive, and multi-pronged solutions.

“The CBN has been proactive, initiating a comprehensive strategy to enhance liquidity in the forex market. In addition to unifying the rates, the bank has also cleared a significant amount of outstanding Forex obligations, and outlined new operational mechanisms for commercial banks, Bureau De Change (BDC) operators and International Money Transfer Operators (IMTOs).

“It is heartwarming to note that we are starting to see the results. Indeed, the naira is stabilizing, and the foreign exchange market is seeing a surge of inflows.

“The latest NBS figures show that capital importation into Nigeria rose by over 66 percent in Q4 2023, compared with the preceding quarter. The CBN Governor has also highlighted the fact that $1.8 billion flowed into the forex market last week, on the back of the new reforms.

“Sadly, as with any effort to reform and sanitise a system entrenched in long-term malpractice, the CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country, who profit from dysfunction and opacity.

“Relevant regulatory and security agencies have been directed to remain vigilant to ensure that malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book. The government will not allow its efforts to be jeopardised.

“Nigerians should rest assured that the government will continue to take further steps to stabilize the naira and safeguard our economy.

“We will continue to seek the patience and understanding of Nigerians as we push through these difficult times, into a season of abundant benefits and truly renewed Hope.”

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DANGOTE REFINERY WILL NOT SELL FUEL BELOW MARKET PRICE —TINUBU PRESIDENCY

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1 day ago

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September 6, 2024

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The Nigerian Presidency has said that Dangote Refinery will not sell its product including Premium Motor Spirit (PMS) below the official market price.

On Tuesday, Aliko Dangote, the Chairman of the Dangote Group, formally declared the commencement of petroleum production at his highly anticipated refinery. This significant milestone marks a major breakthrough in Nigeria’s energy landscape.

During the announcement, Mr. Dangote revealed that the pricing strategy for the refined petroleum products would be determined through collaborative efforts between the Federal Executive Council (FEC) and the Nigerian National Petroleum Company (NNPC) Limited.

 

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FG to allow Dangote Refinery fix petrol price – Report

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2 days ago

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September 5, 2024

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The Federal Government is reportedly set to allow Aliko Dangote’s refinery to fix petrol prices.

This is according to a report from Bloomberg.

Recall that the Dangote Refinery on Tuesday began the production of long-awaited petrol, a development that is a major milestone in Nigeria’s energy sector.

Since then, many Nigerians have been keen to find out the price at which the businessman will sell his petrol.

However, Aliko Dangote has stated that it is not his role to set petrol prices; he will leave that responsibility to the Federal Government.

His primary focus is to ensure that petrol is available.

But Bloomberg reports that the Dangote Refinery, located in Ibeju Lekki, Lagos, with the approval of the Nigerian Government, will begin setting prices for petroleum marketers starting next month (October).

This marks a significant departure from the current practice where the state-owned NNPC Ltd. has been the sole price setter.

Previously, NNPC sold gasoline below market value to mitigate price increases, but it recently raised the price to align more closely with market rates.

Government officials have indicated that Dangote’s refinery will determine its own pricing strategy, and oversight will be limited to ensuring product quality and preventing exploitation.

“Dangote Refinery will certainly not sell their products below market value as a business that was set up to make profit,” a government spokesman Temitope Ajayi told Bloomberg.

“I don’t see how NNPC or the federal government will control price for a private business,” he said.

“Going forward, petrol marketers will be allowed to buy products directly from the Dangote Refinery.” another source said.

The shift comes amid widespread gasoline shortages and substantial debts incurred by NNPC, which has disrupted supply.

The Dangote Refinery is projected to produce around 330,000 barrels of gasoline daily, surpassing 1% of global demand, potentially stabilizing the local market and reducing Nigeria’s dependency on imports.

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Federal Government Will Determine Price Of Our Petrol- Dangote

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4 days ago

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September 4, 2024

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Aliko Dangote
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Federal Government Will Determine Price Of Our Petrol.

“On PMS price, it is an arrangement that is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.

As soon as it is finalized, which is what he is pushing once he finishes with FEC meeting, it can be today or Tomorrow we are ready to roll out in the market”

ALIKO DANGOTE

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