In an address to members of opposition in Port Harcourt, Vice President and Acting-President Yemi Osinbanjo highlighted factors responsible for the falling value of Naira against the Dollar.
Corruption and vandalism of pipelines on the Niger-Delta region were pinpointed as factors responsible for the reduction in volume of Dollar reserved with the Central Bank of Nigeria. Read what he said below.
“Some people have said ‘Ah! When you came the exchange rate was this now it is that.’ What accounts for exchange rates is simple. It is Dollars. If you don’t have Dollars, your exchange rate goes up. If you have dollars your exchange rate goes down.
“If you lose oil revenues through corruption and pipeline vandalism, your exchange rate goes up. It’s very simple. If Dollar is scarce, then the Naira to buy it will be more. That’s a simple thing.
“Exchange rate is not magic. It is just the availabilityof Dollars. Once we are able to earn the Dollars the exchange rate will go down. And we are hopeful that all of what we are trying to put in place, and with cooperation of all of us. We’ll be able to bring the exchange rate down.”
The Vice President assured citizens that the government is implementing measures to end the diversion of foreign currencies from the National Treasury through corruption and vandalism of pipeline facilities. The exchange rate he said will go down once the government is able to earn more dollars than what is currently earned.