Nigeria is oil dependent nation. The progress of this nation depends on the daily output of crude oil, and the daily output is determined by the peace in Niger Delta.
The reason why CBN intervention will be sustainable is because of the peace in Niger Delta.
Nigeria as a country earns millions of US dollars daily from the sale of crude oil.
When there’s peace in Niger Delta, there will be adequate supply of gas to the power stations. When there’s supply of gas to the power stations, there will be power supply for Nigerians and when there’s power supply, there will be less demand of diesel and fuel for home and office use.
When there’s less demand of diesel and fuel, there will be a decrease of importation of petroleum products, then the law of demand and supply will set in, filling stations will start selling below 145 NGN per litre.
Also there will be less demand of dollar by importers of petroleum products because the demand for it will decrease. As Naira appreciate, fuel template will be adjusted; this means there will new fuel pump price.
As all these will be happening, Naira will be appreciating more because the demand will no longer be the same. The cost of things will start taking its normal shape.
The way to take dollar to its previous state (510 NGN per USD), is to start bombing pipelines in the Niger Delta, when this happens, there will be low output and the CBN at the other end will not have enough dollars to defend the Naira with. This is evil. ( Infact, God forbid this to happen to our own dear Nation)
2017 budget exchange rate is pegged at 305 NGN per USD. Also crude oil benchmark for 2017 budget is at 44.50 USD per barrel, crude oil currently sell above this benchmark.
Personally, I have lost a lot of money due to this change, but I ain’t pained that much because I want things to get better for all of us.
We still remain the 5% holding the growth of the country economy.
Proudly Niger Deltan
God bless Niger Deltans
God bless Nigeria
( Written by a Nigerian Business Man in Niger Delta).