Naira May Fall To N700 Per Dollar Over Low Export And Oil Theft – Report

to stem the steady fall of the naira against the dollar, the Federal Government has been advised to as a matter of urgency put an end to the festering crude oil theft, boost oil production, and put in place necessary measures to boost local production and exportation of other goods.

This online news platform understands that some economists told PUNCH newspaper in an interview over the weekend that these were needed to boost the country’s foreign exchange earnings and bridge the supply deficit.

The Association of Chambers of Commerce, Industry, Mines, and Agriculture however warned that if nothing was done urgently, the Nigerian currency, the naira might fall to about N700 to a dollar.

Manufacturers, business owners, and many Nigerians have expressed deep worries over the value of the naira, which exchanged for as high as N590 in the parallel market a few days ago. While the official rate stood at N416.23, findings from different sources on Saturday evening showed that the naira had fallen to an unprecedented N600 to a dollar.

The MD/CEO, of Cowry Asset Management, Mr. Johnson Chukwu, said the naira had continued to suffer a free fall because of weak foreign exchange earnings, due partly to the low crude oil production, crude oil theft, and low export of goods.

He said, “It’s all about how much you spend on importation compared to how much you earn from exportation. We are not producing enough so we don’t have enough resources to support the naira.

He stated, “This model would enhance liquidity in the foreign exchange market, reduce uncertainty in the forex market and enhance investors’ confidence. Also, it is a more transparent mechanism for forex allocation, it minimizes discretion in the allocation of forex and reduces opportunities for round-tripping and other sharp practices.”