ABUJA, Nigeria – The Central Bank of Nigeria (CBN) injected $197.71 million into the foreign exchange (FX) market on Friday, April 4, 2025, in an effort to stabilize the naira and ensure market liquidity amid global economic volatility.
The CBN’s Director of Financial Markets Department, Dr. Omolara Omotunde-Duke, announced the intervention, emphasizing the bank’s commitment to fostering a transparent and efficient FX market.
“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 $197.71m through sales to authorised dealers,” the statement read.
The intervention comes as Nigeria faces challenges from global macroeconomic shifts, including recent import tariffs imposed by the United States, which have impacted emerging markets and developing economies.
Crude Oil Price Decline
A key factor prompting the CBN’s action was a 12% drop in crude oil prices, Nigeria’s primary revenue source. Prices settled at approximately $65.50 per barrel, posing a challenge to the country’s exchange rate dynamics and investor sentiment.
Despite these challenges, the CBN expressed confidence in Nigeria’s FX framework, describing it as resilient and adaptive to shifting economic fundamentals.
Naira Depreciation
Following the intervention, Nigeria’s official exchange rate depreciated to N1,600/$1 at the close of trading on April 4, 2025, down from N1,569/$1 the previous day. This marks a 1.9% depreciation and the lowest the naira has traded since December 4, 2024.
CBN data also revealed a wide trading range during the day, with an intra-day high of N1,625/$1 and an intra-day low of N1,519/$1. The NFEM closing rate was N1,567/$1.
The CBN reiterated its call for authorized dealers to adhere to the Nigerian FX Market Code, upholding transparency and professionalism in all market dealings.
The central bank’s recent move signals its resolve to stabilize the naira, protect investor confidence, and ensure a predictable FX environment as Nigeria navigates complex global and domestic economic challenges.
