Why FG, CBN must implement policies that'll boost FX earnings-Expert

A retired Deputy Director of the Department of Petroleum Resources, Engineer Sunday Babalola, has said that to address increases in the prices of petroleum products in Nigeria and a possible looming shortage of petroleum products, the Central Bank of Nigeria (CBN) led by Mr Godwin Emefiele and the Federal Government under President Muhammadu Buhari should implement policies that will boost the foreign exchange earning propensity of Nigeria.

He also urged FG to ensure that the productive sector was strengthened so that Nigeria will produce more, sell to the international community and earn sufficient foreign exchange needed for the country’s international trade exchange.

Babalola, who is also a former acting Managing Director of Belemaoil Nigeria Limited and currently, Director of All Grace Energy, in an interview on Wednesday in Lagos, also lamented that Nigeria was not producing much to compete favourably in the foreign exchange dynamics.

He said, “When you look at the depot fees, you cannot blame them when you consider that they use foreign exchange to buy PMS which is sold to us. But that shows the weakness in Nigeria. Nigeria does not produce much and we import almost everything. There will therefore be the need for foreign exchange and that is the bane of our society.

I wish people in government can enunciate policies that would help the productive sector of the economy and this foreign exchange issue will go down or it will disappear altogether.

“We need to go back to the beginning of the problem by ensuring that the productive sector is active. As long as we are not producing, the foreign exchange earnings will be very low. It is an economic truth. Since we produce crude oil, we sell it outside and we use the money to import white products, which means we have done nothing.

“It is energy wasted. No work done! And that is why we are having this problem of foreign exchange. When scarcity comes, it will waste people’s time and resources because then, people will queue for white products for hours if not for days and the time n spent is already wasted time.

“Government should come up with policies that will help the productive sector so that we will not be in this mess again. As long as we have the foreign exchange problem, we will keep having the problems we are having whether it is in the petroleum industry or other industries.

“Government should adopt policies that will stop high exchange rate to forestall crises in the oil sector, fuel scarcity, queues at the petrol stations and problems.

“It should support efforts that will encourage local manufacturing so that we will have a productive economy. Our economy today is not productive. Everybody will go and import things and foreign exchange is needed for that and we are not the United States of America.”

Though the Group General Manager, Group Public Affairs Division, NNPC, Malam Garba Deen Muhammad, had said there are sufficient products that can last over 30 days and said it was unnecessary for people to panic due to the change that followed the reforms in the sector, fears are rife of possible increment in the prices of Premium Motor Spirit, (PMS) popularly called petrol and looming petrol scarcity in the country.

It was gathered that some states and cities had already experienced fuel scarcity.