Dollar to Naira News

Residents bear brunt of South Sudan’s oil woes – Punch Newspaper

By Agency Report

At 75, Galiche Buwa lived through civil wars, famine, and natural disasters, but the South Sudanese widowed mother of four always managed to get by, thanks to her grocery business.

Now, however, even that standby is on shaky ground, as the oil-dependent nation’s economy reels from revenue losses following the rupture of a key pipeline in its war-torn neighbour Sudan in February.

The damaged pipeline was crucial for transporting South Sudan’s crude oil abroad, with petroleum exports traditionally accounting for about 90 per cent of the impoverished country’s GDP.

The implications have been far-reaching, with inflation soaring as the value of the South Sudanese pound relative to the US dollar plunges on the black market, from 2,100 in March to 3,100 today.

The official rate slipped from around 1,100 in February to nearly 1,550 this month.

“Since the 1970s up to now I am still here, but these days we are suffering. Things are tough,” Buwa said as she glumly tended to her stall at the Konyo-Konyo market in the capital Juba.

“We are unable to buy stock, things are expensive… and prices keep rising every day,” she said, compelling her to purchase supplies on credit.

As wholesale costs shoot up, retail prices follow — a mug of maize sold by Buwa was worth 800 South Sudanese pounds in March, compared to 2,000 today, she said.

Teddy Aweye, a 28-year-old mother of two, said she was struggling to put food on the table, forcing her family to eat just one meal a day.

“You go to the market today, you get a price, and tomorrow you go back and you get a different price… I had to return home without buying anything,” Aweye told AFP.

“Life is really very difficult.”

 Losses upon losses –

It is a common refrain across Juba’s biggest market, where several traders told AFP they were racking up losses daily.

Abdulwahab Okwaki, a 61-year-old butcher, said his business was in crisis.

“A customer who used to (buy) one kilo is now taking half a kilo, and the one taking half a kilo now takes a quarter… and the one who was taking a quarter is not coming anymore,” he said.

The father of eight often loses money when he is unable to sell meat before it goes bad.

Many of his fellow butchers have simply quit, unable to make ends meet, he said.

Higher-end businesses have also taken a hit.

Harriet Gune, a 27-year-old entrepreneur, said her fashion boutique was losing customers.

“The more you increase prices for the items in the shop, the more you scare away clients,” she told AFP.

A pair of jeans that used to cost 25,000 South Sudanese pounds in March now sells for 35,000, she said, adding that she needed to raise prices “to be able to get enough money to order new stock”.

 ‘Develop alternatives’ –

Even government officials are feeling the pinch.

In May, Finance Minister Awow Daniel Chuang told parliament that the government would struggle to pay salaries to lawmakers, military, police, civil servants, and other officials because of a shortfall in revenues.

He said the country was losing about 70 per cent of its oil revenues because of the pipeline rupture, which has affected exports of Nile blend crude and Dar blend crude.

“The production is only from Blocks 12, 14, and 58, which means there is only around 30 to 35 per cent of the oil that is flowing,” he said.

South Sudan was in crisis even before the pipeline shutdown sent shock waves through its economy, with fears that long-anticipated elections, currently scheduled for December, will be delayed.

In addition to rampant corruption draining its coffers — with the ruling elite routinely accused of plunder — the country is very vulnerable to currency shocks because it imports nearly everything, including agricultural produce.

The fighting in Sudan between the army and the paramilitary Rapid Support Forces since April 2023 has only exacerbated the situation, analysts say.

The conflict has killed tens of thousands of people, forced millions to flee — including over 700,000 to South Sudan — and pushed Sudan to the brink of famine.

Economist and government advisor Abraham Maliet Mamer told AFP that South Sudan, which declared independence from Sudan in 2011, needed to plan to secure its future.

“Our country is suffering. We have less money, we have fewer services, and our security is a problem,” he said, urging the government to build refineries and pipelines through other nations.

“Sudan will never be the same again. Until we develop alternatives… we will be having issues,” he warned.

AFP.

See Dollar to Naira black market today, Pound to Naira, Euro to Naira, Dollar to Naira CBN rate and Dollar to Naira Bank rate today.

Related Posts

NOVA Bank plans nationwide expansion, competes for retail market – The Guardian News

By The Guardian News NOVA Bank Limited said plans are underway to expand branches across Lagos, Port Harcourt, Abuja and Kano as it seeks a reasonable slice of…

Airtel Africa, 23 Others Lift Stock Market by N262bn – This Day News

By Kayode Tokede The stock market segment of the Nigerian Exchange Limited (NGX) yesterday took a positive stance as investors buy-side actions in Airtel Africa Plc and 23…

Summer vacation, strong U.S. dollar push naira to a 4-month low – Nairametrics

By Olumide Adesina The bullish dollar index and summer vacation have led to a considerable increase in demand for foreign currencies, putting significant pressure on the naira. The naira…

Appeal Court quashes N20 million damages against Guaranty Trust Bank, backs it’s Know-Your-Customer requirements on corporate account – Nairametrics

By Nnaemeka Onyekachi Story Highlights  The Court of Appeal in Abuja has overturned a N20 million damages ruling against Guaranty Trust Bank (GTB) by the Federal Capital Territory High…

Standard Bank Securities: Banks under our coverage could pay N217bn as proposed windfall tax – The Cable News

By Bunmi Aduloju The Standard Bank Group (SBG) Securities says banks under its coverage could pay N217 billion in the proposed windfall tax. In a report on Thursday,…

Central Bank’s Misguided Policies Under Cardoso Have Worsened Naira, Strangled Nigerian Economy – Civic Organisation – Sahara Reporters

By Sahara Reporters The Nigeria Must Win Network (NMWN), a civil society, has stated that interventions under the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso’s leadership…