₦airaland Forum

This is actually going to happen.

The devaluation of the Naira.

Also the fact that the CBN have closed the official trading RDAS window and migrated everyone to the interbank.....

2015 is going to be a tough year in Nigeria.

http://www.tribune.com.ng/news/news-headlines/item/30360-expert-blames-naira-devaluation-for-high-diesel-price/30360-expert-blames-naira-devaluation-for-high-diesel-price

Expert blames naira devaluation for high diesel price

25.Feb.2015 0 Comments Tunde Dodondawa-Lagos


Despite the decline in crude price at the international market, the price of Automated Gas Oil (AGO), otherwise called diesel, has continued to be steady at between N140 and N150 per litre.

However, a stakeholder and an expert in the oil and gas industry blamed the high cost of diesel on recent devaluation of the naira by the Central Bank of Nigeria (CBN).

Speaking with the Nigerian Tribune on Tuesday in Lagos, the Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Femi Olawore, stated that “as price of crude oil drops at the international market, our exchange rates moved upward and swallowed all the advantages we would have derived from the decline in crude price.”

He said exchange rate plays an important role in the calculations of pump price of diesel.

“At N171.36 to a dollar, the landing cost of diesel was N89.77 per litre. When it rose to N188 to a dollar, landing cost moved to N96.86 per litre. At N199 to a dollar, the landing cost of diesel rose to N101 per litre.

“Please note that all these costs exclude other related costs like the distribution margins, transportation cost and so on.”

“And the exchange rates quoted above were the CBN official interbank rates. The higher the exchange rate, the higher the cost of imported products,” he stated.

It will be recalled that the CBN had devalued the naira in November 2014 and further devalued it in February 2015 by the cancellation of the retail Dutch Auction System (rDAS) and the wholesale Dutch Auction System (wDAS).

Following these decisions, the naira has depreciated significantly and it was exchanged for as high as N220 to a dollar on Tuesday at parallel markets.

Eventually it is the half educated and utterly tribalistic supporters of Jonathan who will round him up, kidnap him and deliver him to justice.

Lovely.

Actions and choices will always have consequences. Even for Nigerians - a people with a pervasive belief that they are exempt from the laws and principles that govern human behaviour elsewhere.

Nigeria's leaders have refused to build refineries here in Nigeria. For over one and a half decades since the return to civil rule, our so-called leaders have been engaged in a cat and mouse game and shameless buck passing on who should build refineries and when.

For decades we have lived with this incredibly aberrant situation in which Nigeria - a mid ranking OPEC member - routinely imports refined petroleum products for domestic consumption. This is the fallout of a criminal refusal to invest in new local refining capacity.

Today, there is an oil glut. Pump prices have fallen across the board in several countries. Nigeria has cut pump prices too, but this is clearly turning out to be unsustainable because oil marketers are having difficulty with rising import costs (arising from a devalued Naira). It is bad enough that oil revenues are falling because of falling oil prices but Nigerians will soon have to pay more for refined petroleum products because Nigeria imports a sizable quantity of these products for local consumption.

So we are damned either way. Heads we lose, tails we lose again.

Nigerians have no one to blame but themselves. They have not asked hard questions of their leaders as to why the cards in the deck are always stacked against ordinary Nigerians. Nigerians spend more time and care in choosing a pair of new shoes than they do in choosing their leaders. Nigerians do not wish or care to hold their leaders accountable. And for this indifference to matters that have life and death implications, they will continue to pay a heavy price.

The noose is getting tighter.

We are in deep sh1t

I just bought for 100 naira at a filling station within the Navy Barracks. What is going on?

cust0mized13:
We are in deep sh1t

Most folks don't really see or understand this and its very sad and even frightening. The economy is on a downward slope and nobody seems bothered.

I truly fear for Nigeria