The Central Bank of Nigeria (CBN) has injected $197.71 million into the country’s foreign exchange market to ensure liquidity and stability. This move comes in response to global economic shocks, particularly the impact of new tariffs imposed by United States President Donald Trump and the recent decline in crude oil prices.
In a statement released on Saturday, Omolara Duke, Director of the Financial Markets Department at CBN, noted the volatility in the forex market observed between April 3 and 4, 2025, largely driven by macroeconomic changes in both global markets and emerging economies like Nigeria.
Duke explained that the recent 14% import tariff imposed by the US on products from Nigeria had adversely affected the value of the naira against the dollar. Additionally, a sharp 12% drop in global crude oil prices—now hovering around $65.50 per barrel—has added new challenges for Nigeria, which is heavily reliant on oil exports.
“The developments were triggered by the US government’s new import tariffs and the weakening of crude oil prices, causing a period of adjustment in global markets. These events have had ripple effects on emerging market economies,” Duke said.
As part of its ongoing efforts to stabilize the market, the CBN facilitated market activities on Friday, April 4, 2025, by providing $197.71 million through sales to Authorized Dealers.
The CBN’s intervention aims to safeguard the naira and maintain liquidity as the country navigates the complexities of shifting global economic conditions.
