Nigeria’s economy recorded mixed developments on Tuesday as the naira traded at around ₦1,382/$ at the official foreign exchange window while strengthening slightly to about ₦1,412/$ on the parallel market. The movement came amid continued volatility in the foreign exchange market and major policy shifts in the energy sector.
In a move aimed at boosting oil production, the Federal Government approved an $11.5 per barrel investment tax credit for Shell’s deepwater operations, part of efforts to encourage fresh investment and increase crude oil output from offshore assets. Industry stakeholders say the incentive is expected to improve investor confidence and accelerate major upstream projects.
Meanwhile, motorists are facing higher fuel costs after petrol prices increased by about ₦100 per liter in many parts of the country. The increase follows Dangote Refinery’s decision to switch domestic fuel sales from naira to U.S. dollars, citing challenges in sourcing enough crude under the government’s naira-for-crude arrangement and the rising cost of imported crude. The shift transfers foreign exchange risks to petroleum marketers, who are expected to pass the added costs on to consumers.
