Chairman of BUA Group, Alhaji Abdul Samad Rabiu, has predicted that prices of commodities and services in the country will continue to drop in coming days, citing strengthening Naira.
Speaking to reporters in Lagos after paying Eid-el-Fitr homage to President Bola Tinubu, Rabiu also projected that the with the current trend in the foreign exchange market, the Naira should soon exchange at ₦1, 000 to $ 1.
The BUA founder, who commended President Tinubu and the Central Bank of Nigeria (CBN) for their efforts in stabilising the exchange rate, also lauded the collaborative efforts between the government and the private sector in advancing economy recovery.
“The collaboration between the government and the private sector to hasten the economic recovery is doing very well.
“The biggest issue had always been foreign exchange; you know everything in Nigeria is in the debt of foreign exchange. At a time, it was almost N1900/$, but today, the rate is coming down to almost N1,200/$.
“We knew then that the high rate was due to many factors, including speculation and manipulation, and a lot of people were actually commercializing their dollar.
“We knew that the reform was not going to be easy, it was frosty at the beginning, but now, it is much calmer and I expect that the exchange rate to be below N1000/$.
“We must commend His Excellency, President Tinubu, and the CBN on what they have done and achieved. If the exchange rate is down to where a lot of people can afford it, things will be better,” he stated.
Rabiu also anticipated a gradual decrease in commodity prices in the coming months, citing the recent reduction in diesel prices as an example.
“A lot of companies may have bought things and goods when the rate was higher, so it will take a bit of time before things fizzle out, so I expect that in a few months’ time, you will see that prices will definitely come down.
“For example, the price of diesel a few days back was N1700 per liter, but today, it’s about, N1,200 to a liter
“As a matter of fact, we bought diesel from Dangote Refinery on Monday below N1200/Liter for our transport and operations. We bought quite a lot and definitely, prices will continue to go down.
“I know that Dangote gave us a lower price because of our relationship but that goes to show that prices are coming down and I’m sure and confident that things will continue to come down so we need to be a bit more patient, things are taking shape. The Government has done very well,” he said.
The BUA founder commended the convergence of exchange rates in Nigeria as a significant achievement after decades of disparity, commending the of disparity, commending the government’s commitment to achieving this milestone.
“This is the first time in over 30 years that I have seen one exchange rate in Nigeria, so it’s really commendable and I believe that in a few months, we will see things going back to normal.
“We all need to come together and support the government and her policies. The government means well but we need to be patient.
“These reforms will take time, it is not easy and it is not something that can be done in one day, so we are working together, especially, now that Mr. President has established a Committee, comprising the government and the private sector, so we are supporting each other.
“We are always advising the government and the government is listening and this is very important. The fact that the government is listening means so much to the Private Sector,” he said.