Prof. Park Idisi, a Lecturer, Department of Agriculture, University of Abuja, said naira appreciation against the dollar had nothing to do with Donald Trump’s victory.
Idisi told the News Agency of Nigeria (NAN) on Thursday in Abuja that the speculation going round that Trump’s victory strengthened the naira should be discarded.
According to him, naira is appreciating due to OPEC’s efforts to stabilise crude oil prices and raise output which is in favour of Nigeria.
“Nigeria is earning more hard currencies now because the sale of crude oil and output is increasing every day, naira has been appreciating before Trump’s victory that just happened yesterday,’’ he said.
NAN reports that OPEC warned in a new report that oil prices might not rise above 60 dollars per barrel until the end of the decade.
It is an acknowledgement that an array of bearish forces would conspire to keep a lid on any price rally.
OPEC’s new World Oil Outlook (WOO) offers medium and long-term predictions for the oil market. OPEC’s Reference Basket (ORB) price would average 40 dollars per barrel this year.
The group projects that the price would rise by five dollars per barrel each year through the rest of the decade; that only takes ORB prices up to 60 dollara per barrel in 2020.
He also said that government policy of not giving Forex to importers contributed to naira appreciating.
“Currently, Nigerian importers are not importing rice, cement and other items since Federal Government stopped issuing Forex and the importers refused to use their hard currency too.’’
According to him, Trump’s policy may favour Nigeria when he assumes office, saying that the quantity of crude oil U.S. was buying from Nigeria under OPEC arrangement woud not change.
He said speculation about Trump’s administration repatriating Nigerians living in U.S. should be discarded, saying only illegal migrants would be affected. (NAN)
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