Miracle Akubuo
The Central Bank of Nigeria revealed to the House of Representatives that it lacks control over fuel prices and foreign exchange rates.
According to Clement Osagie, the principal manager of CBN, the recent fuel price hike is a result of subsidy removal, following the announcement of a regime of unified exchange rates by the President.
He said, “Specifically we are talking of fuel and PMS and I believe that it should actually impact on fuel price because after the inauguration of Mr President,he announced that he would regime of unified exchange rate.And the central bank has no other option than to leave the defending model that they were using for exchange and apply a model that will seemingly look like a unified rate in the market.”
As a consequence, the CBN had to adjust its exchange rate model to conform to this unified rate in the market.
Furthermore, Ogbugo Ukoho, the executive director of the Distribution System of Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), disclosed that the Petroleum Industry Act (PIA) empowers the NMDPRA to intervene in the fuel market.
He said, “PIA has given the authority quiet enormous power to intervene to avoid cartel building, which is why we have introduced competition and to deal with illegal profiteering and more importantly work with the federal consumer protection council in relation to consumer protection”
The primary objective is to promote healthy competition and prevent illegal profiteering. Additionally, they are collaborating with the federal consumer protection council to safeguard consumers’ interests.
Chairman Babajide Benson of the Ad-hoc committee assured Nigerians that lawmakers are actively addressing the impact of the subsidy on the people.
Babajide said,”We are not happy because Nigerians are still hurting, feelings the effect of the pump price increase what can we do?.Our job here is to ensure that the increase in price ,the impact is drastically attended to and that Nigerians don’t face untold hardship.What we are here is to bring the relevant people to account and make them work for Nigerians.
