The Central Bank of Nigeria (CBN) has taken a strategic step to stabilise the naira by injecting $197.71 million into the foreign exchange (FX) market, following three consecutive days of depreciation that saw the naira drop by N35.77 against the dollar.
In a statement released by Omolara Omotunde Duke, Director of the Financial Markets Department, the apex bank said the move is aimed at enhancing FX liquidity and ensuring an orderly market environment, in line with its commitment to stabilising Nigeria’s monetary ecosystem.
“This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market,” the CBN stated.
The intervention comes amid mounting pressure on the naira, which has been driven by surging FX demand, global macroeconomic headwinds, and a drop in crude oil prices. According to the CBN, the local currency was affected by market volatility between April 3 and 4, 2025, mirroring broader global financial tensions.
One major trigger was the United States’ announcement of new import tariffs, which affected several developing and emerging market economies. This policy shift has created a ripple effect across global financial systems, especially in oil-dependent nations like Nigeria.
Additionally, crude oil prices have slumped by over 12%, settling around $65.50 per barrel, introducing new revenue pressures for Nigeria, which relies heavily on oil exports to finance its budget and meet FX obligations.
Despite the challenges, the CBN reiterated its confidence in the strength and flexibility of Nigeria’s FX framework, stressing that it is designed to adapt to changing economic fundamentals.
“The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework,” the statement read.
Authorised dealers were also reminded to operate within the guidelines of the Nigeria FX Market Code and uphold integrity in all client dealings and market transactions.
This latest intervention underscores the CBN’s active role in managing the FX market and fighting against speculative pressure on the naira. However, with ongoing global economic uncertainties and fluctuating oil prices, the effectiveness of these injections will depend on long-term reforms, fiscal discipline, and increased FX inflows through exports and diaspora remittances.
Market watchers will now keep a close eye on the naira’s performance over the coming weeks, especially as Nigeria works to stabilise its economy amid mounting debt and inflationary concerns.
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