In a decisive move to ease liquidity constraints and stabilize the naira, the Central Bank of Nigeria (CBN) injected the sum of $197.71 million into the foreign exchange market on Friday.
According to the apex bank’s Director of the Financial Markets Department, Dr. Omolara Omotunde Duke, the move aligns with the Bank’s broader strategy to ensure a stable, transparent, and efficient forex environment.
The intervention comes as Nigeria grapples with external economic headwinds, including the ripple effects of new U.S. import tariffs and a sharp downturn in crude oil prices—now down over 12 per cent to around $65.50 per barrel.
Market data from the CBN indicates that the naira closed at N1,600/$1 on April 4, down 1.9 per cent from N1,569 the previous day.
This marks its weakest performance since December 4, 2024, when it hit N1,608/$1.
Within the first four trading days of April alone, the naira has depreciated by 3.9 per cent, having closed March at N1,537/$1.
Intra-day trading on Friday revealed wide volatility, with the naira reaching a high of N1,625 and a low of N1,519 to the dollar. The average rate at the Nigerian Foreign Exchange Market (NFEM) was recorded at N1,567—also the weakest this year.
Economic analysts have described the CBN’s intervention as a “critical but temporary relief measure” for the local currency, warning that lasting stability will depend on deeper structural and policy reforms.
A Lagos-based economist, Dr. Tunde Adesina, noted: “This injection provides a breather, but it doesn’t solve the underlying issue of forex supply imbalance. With crude prices falling and global macro risks rising, Nigeria must diversify its sources of foreign earnings and strengthen investor confidence with consistent policy signaling.”
Similarly, currency strategist Adaeze Onuoha observed that while the naira is under intense pressure, some speculative elements may be inflating volatility.
“The wide intra-day spread from N1,519 to N1,625 reflects panic pricing by some traders. The CBN’s prompt action is necessary, but market transparency and discipline among participants are just as crucial.”
The CBN reaffirmed its commitment to monitoring both domestic and global developments closely and assured that the naira’s exchange rate regime is flexible enough to adjust to evolving fundamentals.
As global uncertainty persists and oil prices remain volatile, stakeholders continue to watch how far interventions like this can go in shielding the naira from deeper depreciation.