The President, Nigeria Gas Association, Mr. Dada Thomas, has blamed the macroeconomic situation for the losses incurred by gas suppliers in the country, The Punch reports.
According to him, gas suppliers had been receiving sales proceeds in dollars before the Central Bank of Nigeria made a policy in 2015 that all transactions within the country should be in naira. Thomas, who is the Chief Executive Officer, Frontier Oil Limited, said gas contracts were denominated in dollars in line with the nature of investments in the sector, which was in the greenback.
He explained that the difference of 107 in the naira to dollar exchange rate when it moved from N198 to N305 per dollar had caused gas suppliers to record losses. Thomas explained that it became difficult for operators in the gas sector to meet the loan obligations because dollars were not available at the official rate, adding that suppliers lost 50 per cent of the value of their proceeds in the process.