The Institute of Chartered Accountants of Nigeria has said the continued decline of non-oil exports and low oil production have been the major factors responsible for Nigeria’s current forex crisis.

ICAN President, Innocent Okwuosa, stated this on Monday while presenting the institute’s position paper on Monday in Lagos on economic matters.

According to him, the professional body is prepared to support government efforts to revamp the economy and promote transparency and accountability.

Okwuosa said: “Undisputedly in Nigeria, crude oil export still accounts for more than 90% of the foreign exchange revenue which makes it the major source of generating foreign exchange.

“However, with production falling to just 1.081 million barrels per day (bpd) in July 2023 compared to the quota of 1.8 million bpd set by the Organisation of Petroleum Exporting Countries (OPEC), our foreign exchange revenue is dwindling.

“This is due in part to oil theft, production inefficiencies and lack of accountability in the industry, and as such our foreign exchange revenue and hence exchange rate will continue to be challenged.”

Okwuosa further blamed high inflation rate, low productive base, weak infrastructure, policy inconsistencies, corruption, non-alignment between fiscal and monetary policies, and high cost of doing business as other factors that are culpable for Nigeria’s current forex quagmire.

He called on the government to implement comprehensive economic reforms premised on diversification of the economy to help address the issue of forex scarcity.

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