Oil Prices Slide as CBN Injects $198 Million to Stabilize Naira

Global crude oil prices have taken a significant hit, tumbling more than 12% to hover around $65.50 per barrel. The sharp decline comes in the wake of sweeping new trade tariffs imposed by U.S. President Donald Trump on a wide range of countries, sending shockwaves through global markets and rattling investor confidence.

Before the tariff announcement, crude was comfortably trading above the $70 mark. The sudden shift reflects broader market fears about slowing global trade and reduced energy demand.

The OPEC basket—a weighted average of prices for the organization’s twelve member crudes—was also not spared. It slipped to $75.35 per barrel on Thursday, down from $77.44 the previous day, according to figures released by the OPEC Secretariat.

For Nigeria, this downturn in oil prices poses a serious challenge. Crude oil remains the country’s economic lifeblood, accounting for nearly 90% of its foreign exchange earnings. As an oil-dependent economy, any sustained drop in prices puts pressure on the nation’s fiscal stability and currency.

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In response to the volatility, the Central Bank of Nigeria (CBN) moved swiftly to calm the waters. In a circular issued on Sunday, the apex bank disclosed that it had facilitated market activity on Friday by injecting $197.71 million into the foreign exchange market through sales to authorized dealers.

The CBN emphasized that the move aligns with its ongoing efforts to maintain liquidity, support orderly market operations, and ensure the stability of the naira.

“The recent movements in the foreign exchange market between April 3 and 4 reflect broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies,” the statement noted.

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The bank further pointed to the global ripple effect caused by the U.S. government’s announcement of new import tariffs, stating that this policy change has prompted a wave of market adjustments across economies—particularly those heavily reliant on commodity exports.

“Crude oil prices have also weakened—declining by over 12% to approximately US$65.50 per barrel—presenting new dynamics for oil-exporting countries such as Nigeria,” the CBN said.

With oil prices in retreat and market uncertainty growing, Nigeria finds itself at a critical juncture. As global macroeconomic pressures mount, all eyes will be on how the government and central bank navigate this turbulent period—and whether strategic interventions can cushion the impact on the economy and the everyday lives of Nigerians.