Speaking on Channels Television’s The Morning Brief programme, economic analyst Oyalowo highlighted a crucial factor behind the nation’s economic difficulties: the weak performance of the naira against the dollar. “I don’t think the price of fuel is a major problem; what is causing most of this problem is the rate at which our naira is priced against the dollar,” Oyalowo stated.
Oyalowo emphasized that the core issue is not the rising fuel prices themselves, but rather the naira’s significant undervaluation. This undervaluation, he explained, leads to increased costs across various sectors, including fuel. “We are still buying fuel at less than 60 cents, so what we are witnessing is not a fuel price increase; it is the devaluation of our currency,” he added.
Looking ahead, Oyalowo forecasted a worsening inflation scenario, particularly once the inflation figures for September are released. These figures will reflect the impact of current petroleum prices on the broader economy. He noted that while there had been a slight improvement in food prices recently, this trend could be reversed by escalating inflationary pressures.
“We would come back next month, and things are likely going to get worse because the inflation figure for September will factor in the current price of petroleum,” Oyalowo warned. He also suggested that food prices might face further challenges as a result of these economic pressures.