The Central Bank of Nigeria (CBN) injected a total of $4.1 billion into the foreign exchange (FX) market in the first half of 2025, marking a 215% increase from the $1.3 billion recorded during the same period in 2024.
This sharp rise in intervention was revealed in the H2 2025 Outlook Report by CSL Stockbrokers Limited, a subsidiary of the FCMB Group and a member of the Nigerian Stock Exchange (NSE). The move is part of the CBN’s ongoing efforts to stabilise the naira and ease FX liquidity pressures.
The naira has remained under pressure in recent months, amid dwindling oil earnings, limited foreign portfolio investments (FPI), and persistent external financing challenges.
While the increased intervention signals the apex bank’s resolve to support the local currency, analysts are warning about the sustainability of this approach, especially in the face of weak economic fundamentals.
“Defending the naira at this scale without strong external buffers could strain reserves and send wrong signals to investors,” one analyst noted.
Nonetheless, the Organised Private Sector (OPS) has backed the CBN’s intervention, stressing that no responsible central bank allows market forces alone to dictate currency value.
“Monetary authorities across the world deploy similar measures to cushion volatility. Complete liberalisation without a fallback plan could lead to chaos,” a spokesperson said.
The report did not specify the monthly breakdown of interventions, but industry experts believe the bulk of the inflows came in March and May, following sharp movements in the naira’s parallel market value.
The CBN has yet to publicly respond to the report, but its previous communications have emphasised the need for price stability and investor confidence in the FX market.
