CBN Has No Control Over PMS, Forex- Official

The Central Bank of Nigeria, CBN says it has little or no control over the price of either PMS or the dollar.

A Principal Manager with the apex bank, Mr Osagie Clement made this known on Wednesday when he appeared before the House of Representatives adhoc Committee investigating the recent hike in the price of fuel.

Mr Clement stated that the demand for PMS has gone down by 30% due to its low demand following the hike in the price.

He said on a monthly basis, $150 million was being deployed to PMS importation from CBN intervention.

Mr Clement urged the federal government to discourage importation and encourage local production, which he said would reduce the current challenges in the nation’s economy.

He however expressed optimism that there are positive times ahead in the next four months for forex to benefit the Nation’s economy.

Explaining further, the Executive Director, Distribution Systems of the Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), Mr Ogbugo Ukoha, said the market forces of demand and supply determine what the prices of products would be.

According to him, the Petroleum Industry Act PIA, has however given regulators the authority to intervene to avoid cartel building, which is why the agency introduced competition to also deal with illegal profiteering.

August 03, 2023