Amid intensifying pressure on Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has injected $197.71 million into the market on Friday, April 4, 2025, in a bid to cushion the effects of global economic disruptions and to maintain orderly market operations. The intervention, which reflects the CBN’s resolve to ensure adequate liquidity and preserve market stability, comes at a time when Nigeria’s currency continues to face mounting headwinds.
The apex bank made this known in a statement released on Saturday by the Director of its Financial Markets Department, Dr. Omolara Omotunde-Duke. She reiterated the bank’s commitment to market integrity and operational transparency, stressing that the move aligns with the CBN’s broader objective of building a stable, efficient, and transparent foreign exchange system.
“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 $197.71 million through sales to authorised dealers,” the statement read. “This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
The intervention comes against the backdrop of heightened global economic uncertainty. A combination of factors—including newly introduced U.S. import tariffs and declining crude oil prices—has triggered a ripple effect across emerging markets. Nigeria, heavily reliant on oil exports, has felt the brunt of these changes, with crude prices dropping more than 12 percent to around $65.50 per barrel. This significant decline has not only affected the country’s revenue inflow but also worsened investor sentiment, increasing volatility in the FX market.
The CBN acknowledged the challenges posed by this global environment but expressed confidence in the resilience of Nigeria’s foreign exchange framework. The bank noted that the system is built to adapt to changing economic fundamentals and promised to continue monitoring both domestic and international developments closely. It also called on authorised dealers to adhere strictly to the Nigerian FX Market Code, emphasising the importance of transparency and high ethical standards in market dealings.
Despite the central bank’s intervention, the naira recorded further depreciation. At the close of trading on April 4, 2025, the naira fell to N1,600/$1, representing a 1.9 percent drop from the N1,569/$1 recorded the previous day. This marks the weakest point for the naira since December 4, 2024, when it closed at N1,608/$1. Within just the first four days of April, the currency has lost 3.9 percent of its value, after ending March at N1,537/$1.
Market data revealed considerable fluctuations in intra-day trading, with highs and lows ranging from N1,625 to N1,519 per dollar. The high of N1,625 indicates that traders priced the naira at significantly weaker levels amid heightened uncertainty, while the low of N1,519 suggests some degree of confidence in possible short-term stabilisation—likely driven by expectations of further interventions from the central bank.
In addition, the NFEM (Nigerian Foreign Exchange Market) average rate closed at N1,567/$1, marking the weakest average rate recorded so far in 2025 and the lowest since December 2024.
The CBN’s proactive stance reflects its awareness of the evolving global landscape and its intent to protect the domestic economy from external shocks. However, with oil prices down and global trade policies tightening, the road ahead for Nigeria’s FX market remains uncertain. The central bank’s continued intervention and the discipline of market participants will be key in navigating the coming months.