The value of the Naira has experienced a further decline, coinciding with the recent decision by the Nigerian National Petroleum Corporation Limited (NNPCL) to increase fuel prices.

The naira has continued its decline against the dollar in the foreign exchange market, following another increase in fuel prices by the Nigerian National Petroleum Company Limited.

This recent adjustment signifies yet another rise in the price of Premium Motor Spirit this year.

Data from the FMDQ indicates that the naira depreciated significantly, closing at N1625.13 per dollar on Wednesday, a drop from N1561.76 on Tuesday, reflecting a decrease of N63.37.

This decline follows a brief period of appreciation on Tuesday, where the naira gained N73.39 against the dollar.

However, on Wednesday, the currency's fortunes reversed, also weakening in the black market, where it fell to N1895 per dollar from N1780 the day before.

Additionally, foreign exchange market turnover saw a reduction, with daily transactions decreasing to $170.60 million on Wednesday from $253.68 million on Tuesday.

In light of the escalating fuel prices, the NNPCL has announced a new increase, raising the price of petrol to N1030 per litre from N898 per litre, marking the second consecutive rise in September 2024.

An industry insider, who wished to remain anonymous, remarked, “The consecutive price hikes are likely to exert further pressure on the already unstable exchange rate.”

A market analyst also observed, “The effects of NNPCL’s fuel price changes are directly impacting the naira. Each increase leads to higher costs for businesses and consumers, which subsequently influences the demand for foreign exchange.”