Naira Falls Sharply Amid NNPCL's Repeated Petrol Price Hikes

In the foreign exchange market, the naira experienced a sharp depreciation against the US dollar, coinciding with the Nigerian National Petroleum Company Limited's (NNPCL) latest increase in the Premium Motor Spirit (PMS) pump price.

On Wednesday, the naira fell to N1625.13 per dollar from Tuesday's rate of N1561.76, as per FMDQ data. This represented a depreciation of N63.37. Despite the loss, the naira had gained N73.39 the previous day, reflecting the ongoing volatility in the currency market.

Similarly, in the black market, the naira dropped from N1780 to N1895 per dollar on Wednesday.

This depreciation occurred as FX daily transaction turnover fell from $253.68 million on Tuesday to $170.60 million on Wednesday.

This downturn in the naira's value comes as NNPCL has continuously raised fuel prices. In September 2024, the corporation increased the petrol price twice, from N898 to N1030 per litre.