Dollar May Rise To N500 Before May 1 — Melaye

Senator Dino Melaye has said that the exchange for a naira to a dollar might hit N500 before May 1 if the concerns with the 2019 budget of the federal government are not addressed.

Melaye said this on Wednesday during plenary.

The Kogi senator said the N8.83 trillion budget was unrealistic by many indications.

“This budget is what Nigerians and the parliament need to be sorry about,” he said, “we have to look at the state of the economy and provisions of the budget there in. Federal Government spent $41 billion to cushion and stabilise the naira. How long can we continue to live in sin and grace continue to abound?

“We do not have any reserve to continue devaluation of naira. Oil price has dropped to 50 from 60 (dollars per barrel). This is very significant and makes the projection of the 2019 budget unrealistic.

“There is a drop in Internally Generated Revenue and the revenue of customs. Federal government has no money to subsidise fuel. In the midst of this calamitous situation, how do we now finance the 2019 budget? Are we going to fund the budget based on daily contribution? Are we going borrow again? These are questions begging for answer.

“There is no longer foreign investments. I announce to you that with all these indices and yard sticks, by the end of May, except there is a miracle, dollar will rise to N500 to 1 dollar. Because we have depleted our foreign reserve. We are a borrowing nation,” Melaye said.

The budget is expected to be passed for second reading after deliberation on March 19.