The Nigerian currency’s downward spiral continues, with the naira depreciating by N63.37 to close at N1625.13 per dollar on Wednesday, according to FMDQ data.
This significant drop comes after a brief appreciation of N73.39 against the dollar on Tuesday.
The latest fuel price increase by the Nigerian National Petroleum Company Limited (NNPCL) has pushed the pump price of Premium Motor Spirit to N1030 per litre, up from N898 per litre. This marks the second consecutive hike in September 2024.
Industry experts warn of further economic pressures due to the back-to-back price hikes. An anonymous insider noted, “The back-to-back price hikes will likely add more pressure on the already volatile exchange rate.” A market analyst also highlighted the direct impact of NNPCL’s fuel price adjustments on the naira, stating, “With each increase, businesses and consumers face higher costs, which in turn affects demand for foreign exchange.”
The naira’s decline was also evident in the black market, where it fell to N1895 per dollar from N1780 the previous day. Foreign exchange market turnover dropped to $170.60 million on Wednesday, down from $253.68 million on Tuesday.
As the economic situation continues to unfold, stakeholders are calling for urgent measures to stabilize the naira and address the country’s economic challenges.
