Business

See Current Value of Naira to Dollar, as Naira Continues to Decline Because NNPCL Raises Fuel Prices Again

Published by Tope Fakinlede on October 10th, 2024.

See Current Value of Naira to Dollar, as Naira Continues to Decline Because NNPCL Raises Fuel Prices Again

Naira and Dollar

The naira has further depreciated against the dollar in the foreign exchange market following another increase in fuel prices by the Nigerian National Petroleum Company Limited (NNPCL).

This adjustment marks another rise in the price of Premium Motor Spirit this year. Data from the FMDQ reveals that the naira closed at N1625.13 per dollar on Wednesday, down from N1561.76 the previous day.

This decline follows a brief recovery on Tuesday, when the naira had appreciated by N73.39 against the dollar. However, by Wednesday, the currency weakened again in the black market, falling to N1895 per dollar from N1780.

Additionally, the turnover in the foreign exchange market decreased, with daily transactions dropping to $170.60 million on Wednesday, compared to $253.68 million on Tuesday.

In light of rising fuel prices, NNPCL announced a new hike, increasing petrol prices to N1,030 per litre from N898, marking the second consecutive increase in September 2024.

An industry source, speaking on condition of anonymity, stated, “The repeated price hikes will likely exacerbate the already unstable exchange rate.”

A market analyst added, “We are witnessing the direct consequences of NNPCL’s fuel price adjustments on the naira. Each increase raises costs for businesses and consumers, which subsequently affects the demand for forei

gn exchange.”