In response to mounting global economic turbulence and a sharp dip in the value of the naira, the Central Bank of Nigeria (CBN) has stepped in with a $197.71 million injection into the foreign exchange market. The intervention, announced on Saturday, is aimed at shoring up liquidity and maintaining stability in Nigeria’s FX ecosystem.
The move comes on the heels of U.S. President Donald Trump’s controversial decision to impose a 14% import tariff on Nigerian goods, a policy shift that has sent ripples through global markets and put added pressure on the naira.
The Nigerian currency has seen noticeable fluctuations against the dollar in recent days as traders and analysts digest the implications of the new tariffs.
Omolara Duke, Director of the CBN’s Financial Markets Department, explained that the bank’s latest move is a direct response to both global and domestic factors.
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“Recent movements in the foreign exchange market between April 3 and 4, 2025, reflect broader macroeconomic shifts currently impacting several emerging and developing economies,” Duke said in a statement.
The Trump administration’s tariff move has triggered a wave of market adjustments globally. For oil-exporting nations like Nigeria, the challenge is compounded by falling crude oil prices, which have dipped over 12% to around $65.50 per barrel.
This decline adds further strain to Nigeria’s dollar inflows and external reserves, prompting the central bank to take action.
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“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorized Dealers,” Duke noted.
She emphasized that this targeted intervention aligns with the CBN’s long-term strategy to build a stable, transparent, and efficient foreign exchange environment.
Despite the headwinds, the central bank remains confident in the resilience of Nigeria’s FX framework, which is designed to adjust appropriately to evolving global and domestic conditions.
“All Authorized Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties,” she added.
With global markets still absorbing the shock of Trump’s sweeping trade policy changes, Nigeria’s financial authorities appear poised to defend the naira and sustain market confidence. As uncertainties linger, the CBN’s proactive stance may prove crucial in navigating the stormy waters ahead.
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