• Prices of goods in the market are set to shoot up, according to Manufacturers Association of Nigeria
• This is as the naira continues its free fall against the US dollar in both the official and unofficial markets
• MAN said that the recurrent fluctuations in the forex market pose challenges for manufacturers in formulating long-term plans

Manufacturers anticipate a further increase in commodity prices of goods in the markets across Nigeria due to the ongoing depreciation of the naira against the United States dollar.

Following the removal of the rate cap on the national currency by the Central Bank of Nigeria in June 2023, the naira has experienced a notable decline on both the official and unofficial foreign exchange platforms.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), where forex is officially traded, the naira sustained its downward trend, falling to a record low of N1,348.63 per dollar

The naira’s depreciation persisted in the parallel market, with the United States dollar reaching N1506/$ yesterday, compared to the previous day’s rate of N1,410.

This decline occurred despite the CBN releasing $500 million to address the backlog of verified foreign exchange (forex) transactions across various sectors.

Francis Meshioye, the President of the Manufacturers Association of Nigeria, told The PUNCH that the persistent value of the naira above N1,400 in the parallel market is likely to result in economic repercussions, leading to price escalations.

Meshioye anticipates that consumers, whose purchasing ability has consistently diminished, are unlikely to welcome these increases in prices. He noted that the recurrent fluctuations in the foreign exchange market pose challenges for manufacturers in formulating long-term plans.