An economist, Henry Boyo, Wednesday, accused the Central Bank of Nigeria of being behind the increase in fuel price in the country. Boyo spoke at a round-table organized by Nigerians United for Democracy, NUD.
Femi Falana, a human rights lawyer, also said that root of the fuel crisis in Nigeria is from the Central Bank. “We analysed the root of the crisis and discovered painfully that the continuous devaluation of the Naira is the cause of our problem and it is instigated by the Central Bank.” Falana said.
Boyo said: “The ministry of finance forgets to recognize that the moment the Naira is devalued the price of fuel shoots up in spite of the low price of crude oil. This is what instigates the need to pay higher prices for fuel. He added that the issue of subsidy would not be discussed if the Naira became N100 to a Dollar because the price of fuel will automatically fall to about N65 per litre.
Speaking on high interest rates on loans in the country, Boyo said that the Central Bank encourages commercial banks to issue high interest rates. “They deliberately and consciously instigate high interest rates for loans because they think they have created too much Naira values in the market. If this Naira values are left unattended to, there would be a situation where there is so much money chasing few goods which would lead to inflation.” He said.