Berger Paints MD blames speculators for dollar crisis
The Managing Director of Berger Paints Peter Folikwe has said that Nigeria’s forex crisis is not a result of dollar scarcity; rather it is caused by the activities of currency speculators.
Mr. Folikwe told MARKETING EDGE recently that a lot of Nigerians who don’t need dollar are hoarding the currency, apparently in the hope that it continues to fall so that they can exchange it for more local currency later on.
“The truth is that the current challenge we face has a solution. The solution is in ensuring that people stop speculating. When there is scarcity of fuel, it’s not because there is no fuel in the country, it means that those who don’t need it are hoarding it. Dollar is available in Nigeria but those who don’t need it are hoarding it,” he asserted.
But despite the situation, Folikwe is optimistic that Nigeria has what it takes to weather the storm of the recession, adding that the indicators shows positive signs for future growth. Both the World Bank and International Monetary Fund IMF have projected a slight GDP growth for Nigeria in 2017.
“We have what it takes as a country to grow. The indicators are there. I believe this recession will have an end date. I might not be an economist to say it’s going to be soon or later but I know everything has a beginning and an end. The will to get it done has to be collective from the government and from individuals and corporate,” he said.
He also commended some of the steps taken so far by the Federal Government to restore growth to the economy. He particularly praised government for given priority to the manufacturing sector in the allocation of foreign currency, adding that the real sector is instrument for growth.
“Government is taken steps in ensuring that dollar allocation to manufacturing is given priority. We want to encourage government to do more of that because without the real sector no economy grows without the real sector,” he said.
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