Companies may collapse over energy, FX crisis – Rewane

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An economist, Bismark Riwane, and other experts have predicted that the high cost of power and diesel will lead to the collapse of many businesses.

“Two things are happening: one electricity supply has dropped and the price of diesel went up by 300 per cent. So, when you add the two together you will find out that there was an increase in the cost of power.

“Two, the foreign exchange availability was reduced significantly. Therefore, people became desperate to replace their inventory. Therefore, it is not surprising that businesses are under pressure and their margins are being compressed. The point is that with the cumulative effect of the decadence and adequate pricing, the cost of producing electricity is much more than what the tariff is giving them.

Also speaking, a member of the Nigerian economic Summit Group, Dr, Ikenna Nwaosu, said, “This has been spoken by so many people and even if i should speak, I will be speaking like a broken record. The Presidential Economic Advisory Committee has previously listed the implications of this state on the economy. I think that is the highest economic advisory body to the government aside from the National Economic Council.

 

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As an economic advisor to Buhari, why did you complain? With all the market and economic analysis you have been discussing. Today Nigeria economic has landed at the point of no return!

The question is, how many standard companies do we have in Nigeria 🇳🇬? God bless my country 🇳🇬✅🙏 We will get there 🔜 🤞💯

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