₦airaland Forum

The Central Bank of Nigeria (CBN) on Friday, injected $197.71 million into the foreign exchange (FX) market in a bid to restore calm as the naira crashed to N1,600 per dollar—its weakest official exchange rate since December—under growing pressure from global economic shocks, including a 14% import tariff recently imposed on Nigeria by the United States.

The intervention, confirmed in a statement released Saturday by Dr. Omolara Omotunde Duke, Director of the Financial Markets Department, marks one of the most direct responses by the apex bank to the turmoil triggered by the U.S. government’s sudden hike in tariffs on a wide range of imports, including goods originating from Nigeria.

“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity…with the provision of $197.71 million through sales to Authorized Dealers,” the statement read.

The Bank said the move aligns with its broader objective of fostering a stable, transparent, and efficient foreign exchange market and reiterated its resolve to maintain market integrity amid rising volatility.

Trump’s Tariff Hitting Nigeria?
But beyond the routine policy language lies a deeper concern: the naira’s sharp depreciation is being increasingly tied to Trump’s decision to impose new tariffs on several countries—including Nigeria—as part of a broader trade overhaul that is beginning to reverberate across global markets.

According to economists, the U.S. president’s announcement of a sweeping 10% baseline tariff on most imports, and a separate 14% tariff on certain products from Nigeria, has directly contributed to the decline of the naira. The impact has been swift. Nigeria, which depends heavily on oil exports and dollar remittances, now finds itself squeezed between falling crude prices and rising trade barriers.


Analysts say Nigeria is particularly vulnerable to external shocks due to its over-reliance on imports and its narrow export base. With U.S. tariffs raising costs for Nigerian goods abroad—and reducing Nigeria’s competitiveness—dollar inflows are expected to decline further. That, in turn, has made it harder for the CBN to defend the naira without depleting its already strained reserves.

Naira Drops to N1,600/$1—Worst Since December
Data from the CBN shows that the naira ended Friday at N1,600 per dollar, down 1.9% from N1,569 recorded the previous day. It marks the weakest official exchange rate since December 4, 2024, when the currency closed at N1,608.

Intra-day trades suggest even wider instability. The naira briefly touched a high of N1,625 before retreating, while some trades settled as low as N1,519—highlighting a broad range of uncertainty in dealer pricing. The Nigerian Foreign Exchange Market (NFEM) average rate, which smoothens out day-to-day spikes, closed at N1,567—the softest level so far in 2025.

In just the first four trading days of April, the naira has already lost 3.9% of its value, after closing March at N1,537.

The market’s volatility has renewed questions about the effectiveness of Nigeria’s FX reform strategy, which had aimed to allow the naira to float more freely in line with market demand and supply dynamics. Economists believe that without buffers, such a system leaves the currency dangerously exposed to external headwinds.

Economists Call for Urgent Action
The dramatic weakening of the naira has prompted fresh warnings from economists who say Nigeria must urgently revise its economic playbook in light of the new global realities. Several experts have urged the government to immediately set up a high-level response team focused on mitigating the effects of Trump’s trade policies on Nigeria’s already fragile economy.

There is growing support for a mix of policy responses. Economists have urged the federal government to fast-track export diversification, especially in non-oil sectors like agro-processing, solid minerals, and services. They are also advocating for Nigeria to begin exploring bilateral trade talks with the U.S. to negotiate relief or possible exemptions from the newly introduced tariffs.

In addition, some have suggested rebuilding foreign exchange buffers through diaspora bonds and concessional loans to strengthen Nigeria’s short-term liquidity. There are also calls for a reassessment of the 2025 budget assumptions, particularly around oil benchmarks and projected dollar inflows, which may no longer be realistic given recent developments.

Another line of thought is for the CBN to offer more structured FX support to key import-dependent sectors of the economy to avoid further supply chain disruptions that could fuel inflation. In parallel, there is also mounting pressure for the CBN to step up transparency around its FX intervention strategy, with clear and predictable signals to prevent panic in the financial markets.

While the CBN has not committed to a daily defense of the naira, the tone of its latest statement suggests it is prepared to act again should market conditions worsen. Dr. Duke noted that the Bank would continue to closely monitor both global and domestic financial conditions and stands ready to intervene further as necessary to maintain market order.

The CBN also called on all authorized dealers to uphold the Nigeria FX Market Code, urging strict compliance and high ethical standards in all transactions with clients and counterparties.

https://www.tekedia.com/cbn-injects-197-71m-to-stabilize-fx-market-as-naira-falls-to-n1600-under-pressure-from-trumps-14-tariff-on-nigeria/

Our economic system is shamble

I thought it is a sin to defend the naira in these reforms

Tinubu govt has no solution to any problem, they can only make problems worse

Lmaooo 😂🤣😹

The amount of subsidy Tinubu is paying for patrol at ₦1000 and the Amount of money used to defend naira at ₦1600 when exposed would shock the world

When cardi B was invited by the Senate of fuel subsidy he was begging for closed section... Sham wan kpai am

Why float the Naira in the first place ! If you will go running up and down trying to defend it again ?

Can someone in very easy way

Explain this injection of money to boost money thats being floated

jocelynor:
Can someone in very easy way

Explain this injection of money to boost money thats being floated

Floating doesn’t mean CBN will not intervene occasionally to help provide liquidity for the market.

Trump recently introduced a wide range of tariffs that has affected trade globally. In fact, global trade has shrieked by about $10trillion in barely three days. All countries are affected so Nigeria cannot be an exception.

So in exceptional situations like this, CBN can intervene to ensure there is liquidity in the market. The aim is to make sure the exchange rate remains stable despite global shocks. The good thing is we are now in a very good position for such interventions with a net foreign reserve of over $23billion compared to the $3.9billion Tinubu met in 2023.

So, injecting $198million is nothing. It doesn’t even scratch our foreign reserve. We are building the reserve for a day like this when such intervention will be inevitable.

seunmsg:
Floating doesn’t mean CBN will not intervene occasionally to help provide liquidity for the market.

Trump recently introduced a wide range of tariffs that has affected trade globally. In fact, global trade has Shriners by over $10billion in barely three days. All countries are affected so Nigeria cannot be an exception.

So, exceptional situations like this, CBN can intervene to ensure there is liquidity in the market. The aim is to make sure the exchange rate remains stable despite global shocks. The good thing is we are now in a very good position for such interventions with a net foreign reserve of over $23billion compared to the $3.9billion Tinubu met in 2023.

So, injecting $198million is nothing. It doesn’t even scratch our foreign reserve. We are building the reserve for a day like this when such intervention will be inevitable.

Well usa lost 8 trillion in 2 days soooo

seunmsg:
Floating doesn’t mean CBN will not intervene occasionally to help provide liquidity for the market.

Trump recently introduced a wide range of tariffs that has affected trade globally. In fact, global trade has Shriners by over $10billion in barely three days. All countries are affected so Nigeria cannot be an exception.

So, exceptional situations like this, CBN can intervene to ensure there is liquidity in the market. The aim is to make sure the exchange rate remains stable despite global shocks. The good thing is we are now in a very good position for such interventions with a net foreign reserve of over $23billion compared to the $3.9billion Tinubu met in 2023.

So, injecting $198million is nothing. It doesn’t even scratch our foreign reserve. We are building the reserve for a day like this when such intervention will be inevitable.

I thought the purpose of floating the naira is for the naira to find its true value determined by the market forces

Who brought the reserves down to $3.9bn and what was your posture towards the govt while it was ruining the reserves?

seunmsg:
Floating doesn’t mean CBN will not intervene occasionally to help provide liquidity for the market.

Trump recently introduced a wide range of tariffs that has affected trade globally. In fact, global trade has shrieked by about $10trillion in barely three days. All countries are affected so Nigeria cannot be an exception.

So in exceptional situations like this, CBN can intervene to ensure there is liquidity in the market. The aim is to make sure the exchange rate remains stable despite global shocks. The good thing is we are now in a very good position for such interventions with a net foreign reserve of over $23billion compared to the $3.9billion Tinubu met in 2023.

So, injecting $198million is nothing. It doesn’t even scratch our foreign reserve. We are building the reserve for a day like this when such intervention will be inevitable.

My dear, quit this defence mechanism for failure

Agbegbaorogboye:
I thought the purpose of floating the naira is for the naira to find its true value determined by the market forces

Who brought the reserves down to $3.9bn and what was your posture towards the govt while it was ruining the reserves?

CBN is a monetary institution and they determine where they want the exchange rate to be. Floating the exchange rate doesn’t mean global shocks won’t happen once in a while. That is the essence of having a strong reserve to rely on for stability when external factors beyond your control happen. Foreign reserves are not for decorations.


Only a senseless person will be trying to feign ignorance of how the reserve got to $3.9billion. It was barely $10billion net reserve when Jonathan was going and crude oil went to as low as $25 PB when Buhari became president. We entered a recession and as we were exiting gradually, the global pandemic started in 2019 and by 2020 to 2021 80% of global economy was on lock down. Crude oil went as low as $1PB

Despite all these, you guys wanted pms subsidies to remain and exchange rate to remain at $1/N450. Nothing was coming in and our consumption never changed. So, where did you think Buhari got the dollars to pay for everything?

Funny enough, you hypocrites are still blaming Tinubu for doing the exact opposite of Buhari. You blame Buhari for maintaining the subsidy regime and pegging the Naira and still blame Tinubu for floating the Naira and ending the wasteful subsidy. So, what exactly is your point again Mr. Hypocrite?

Gaslighting

Tinubu has almost doubled our debt. He is robbing Peter to pay Paul for optics and propaganda

seunmsg:
Floating doesn’t mean CBN will not intervene occasionally to help provide liquidity for the market.

Trump recently introduced a wide range of tariffs that has affected trade globally. In fact, global trade has shrieked by about $10trillion in barely three days. All countries are affected so Nigeria cannot be an exception.

So in exceptional situations like this, CBN can intervene to ensure there is liquidity in the market. The aim is to make sure the exchange rate remains stable despite global shocks. The good thing is we are now in a very good position for such interventions with a net foreign reserve of over $23billion compared to the $3.9billion Tinubu met in 2023.

So, injecting $198million is nothing. It doesn’t even scratch our foreign reserve. We are building the reserve for a day like this when such intervention will be inevitable.

DonEd:
My dear, quit this defence mechanism for failure

The only failure here is your ignorance. CBN’s intervention to ensure market liquidity is not a failure. It shows strength.

DMerciful:
Gaslighting

Tinubu has almost doubled our debt. He is robbing Peter to pay Paul for optics and propaganda

Our debt actually decreased from $108billion in 2023 to $94billion as at this year. Tinubu has paid back over $14billion net since coming on board.

And to cure your ignorance, we don’t pay our national debt with Naira. We pay with dollars. So, converting our national debt to naira just to make it look like it has increased when in reality, the loans are dollar denominated only shows your ignorance or hypocrisy or both. Only dumb heads like Peter Obi and his empty supporters can make such argument.

Agbegbaorogboye:
I thought the purpose of floating the naira is for the naira to find its true value determined by the market forces

Who brought the reserves down to $3.9bn and what was your posture towards the govt while it was ruining the reserves?

Lol, this guy is an Illiterate, if your type was the face of opposition leader, the world would have thought Nigerians are this dumb.
Seunmsg, abeg try not reply this guy. I have never seen someone more dull.

Agbegbaorogboye:
I thought it is a sin to defend the naira in these reforms

jocelynor:
Can someone in very easy way

Explain this injection of money to boost money thats being floated

SalamRushdie:
Tinubu govt has no solution to any problem, they can only make problems worse

These are the lazy and unthinking yoots that want to take over leadership, If today's youth are this dumb, we rather continue with the old horse.
Tell us, if there's anything wrong in intervening in the market to provide liquidity?. CBN is not pegging dollar rate, if it did, then you can be talking about defending the naira. Unless you can tell us the official rate the dollar is pegged.
We know you lost the election, we know you're bitter, but its worse when you combine lack of intelligence to it.
Someone who's supporting Trump that has plunged American's economy into catastrophic disaster within two days is also exposing his low mental capacities. God have mercy.

zero8zero:
These are the lazy and unthinking yoots that want to take over leadership, If today's youth are this dumb, we rather continue with the old horse.
Tell us, if there's anything wrong in intervening in the market to provide liquidity?. CBN is not pegging dollar rate, if it did, then you can be talking about defending the naira. Unless you can tell us the official rate the dollar is pegged.
We know you lost the election, we know you're bitter, but its worse when you combine lack of intelligence to it.
Someone who's supporting Trump that has plunged American's economy into catastrophic disaster within two days is also exposing his low mental capacities. God have mercy.

In 10 years your useless party hasn't improved a single economic or social metric and you are here opening mouth ...Show working or Bleep off

SalamRushdie:
In 10 years your useless party hasn't improved a single economic or social metric and you are here opening mouth ...Show working or Bleep off

In 16 years, tell us what gains PDP made apart from rebasing/ padding the GDP while borrowing to pay workers salaries?

Agbegbaorogboye:
I thought it is a sin to defend the naira in these reforms

my brother, I ve never seen this kind of voodoo economist before
These guys are so daft and beref of ideas ,no wonder el rufai referred to them as illiterates in power
It is like they are the weapons fashioned against Nigerians
The only thing they are good at is how to make life more difficult for Nigerians anything aside that they are clueless

Validated:
The Central Bank of Nigeria (CBN) on Friday, injected $197.71 million into the foreign exchange (FX) market in a bid to restore calm as the naira crashed to N1,600 per dollar—its weakest official exchange rate since December—under growing pressure from global economic shocks, including a 14% import tariff recently imposed on Nigeria by the United States.

The intervention, confirmed in a statement released Saturday by Dr. Omolara Omotunde Duke, Director of the Financial Markets Department, marks one of the most direct responses by the apex bank to the turmoil triggered by the U.S. government’s sudden hike in tariffs on a wide range of imports, including goods originating from Nigeria.

“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity…with the provision of $197.71 million through sales to Authorized Dealers,” the statement read.

The Bank said the move aligns with its broader objective of fostering a stable, transparent, and efficient foreign exchange market and reiterated its resolve to maintain market integrity amid rising volatility.

Trump’s Tariff Hitting Nigeria?
But beyond the routine policy language lies a deeper concern: the naira’s sharp depreciation is being increasingly tied to Trump’s decision to impose new tariffs on several countries—including Nigeria—as part of a broader trade overhaul that is beginning to reverberate across global markets.

According to economists, the U.S. president’s announcement of a sweeping 10% baseline tariff on most imports, and a separate 14% tariff on certain products from Nigeria, has directly contributed to the decline of the naira. The impact has been swift. Nigeria, which depends heavily on oil exports and dollar remittances, now finds itself squeezed between falling crude prices and rising trade barriers.


Analysts say Nigeria is particularly vulnerable to external shocks due to its over-reliance on imports and its narrow export base. With U.S. tariffs raising costs for Nigerian goods abroad—and reducing Nigeria’s competitiveness—dollar inflows are expected to decline further. That, in turn, has made it harder for the CBN to defend the naira without depleting its already strained reserves.

Naira Drops to N1,600/$1—Worst Since December
Data from the CBN shows that the naira ended Friday at N1,600 per dollar, down 1.9% from N1,569 recorded the previous day. It marks the weakest official exchange rate since December 4, 2024, when the currency closed at N1,608.

Intra-day trades suggest even wider instability. The naira briefly touched a high of N1,625 before retreating, while some trades settled as low as N1,519—highlighting a broad range of uncertainty in dealer pricing. The Nigerian Foreign Exchange Market (NFEM) average rate, which smoothens out day-to-day spikes, closed at N1,567—the softest level so far in 2025.

In just the first four trading days of April, the naira has already lost 3.9% of its value, after closing March at N1,537.

The market’s volatility has renewed questions about the effectiveness of Nigeria’s FX reform strategy, which had aimed to allow the naira to float more freely in line with market demand and supply dynamics. Economists believe that without buffers, such a system leaves the currency dangerously exposed to external headwinds.

Economists Call for Urgent Action
The dramatic weakening of the naira has prompted fresh warnings from economists who say Nigeria must urgently revise its economic playbook in light of the new global realities. Several experts have urged the government to immediately set up a high-level response team focused on mitigating the effects of Trump’s trade policies on Nigeria’s already fragile economy.

There is growing support for a mix of policy responses. Economists have urged the federal government to fast-track export diversification, especially in non-oil sectors like agro-processing, solid minerals, and services. They are also advocating for Nigeria to begin exploring bilateral trade talks with the U.S. to negotiate relief or possible exemptions from the newly introduced tariffs.

In addition, some have suggested rebuilding foreign exchange buffers through diaspora bonds and concessional loans to strengthen Nigeria’s short-term liquidity. There are also calls for a reassessment of the 2025 budget assumptions, particularly around oil benchmarks and projected dollar inflows, which may no longer be realistic given recent developments.

Another line of thought is for the CBN to offer more structured FX support to key import-dependent sectors of the economy to avoid further supply chain disruptions that could fuel inflation. In parallel, there is also mounting pressure for the CBN to step up transparency around its FX intervention strategy, with clear and predictable signals to prevent panic in the financial markets.

While the CBN has not committed to a daily defense of the naira, the tone of its latest statement suggests it is prepared to act again should market conditions worsen. Dr. Duke noted that the Bank would continue to closely monitor both global and domestic financial conditions and stands ready to intervene further as necessary to maintain market order.

The CBN also called on all authorized dealers to uphold the Nigeria FX Market Code, urging strict compliance and high ethical standards in all transactions with clients and counterparties.

https://www.tekedia.com/cbn-injects-197-71m-to-stabilize-fx-market-as-naira-falls-to-n1600-under-pressure-from-trumps-14-tariff-on-nigeria/

Borrow for production......tax and spend will not get us anywhere! Pick items we have a comparative advantage and bet all on their production! Agro allied and mining is untapped.........grow rubber, palm oil, and cocoa and build a chain of value-added services around the plantations...........how about life sciences? snake and scorpion venom production....train our youth in that field, arrange them in clusters around Nigeria .....and it becomes a gold mine!...........never knew yoruba agbados where this clueless

Why cbn intervention. I thought we have had 3 quarters of positive balance of trade, thought crude oil export is 1.7m. I thought detty December, cbn policy has brought billions so why the intervention. Propaganda can never transform a country. Never

zero8zero:
In 16 years, tell us what gains PDP made apart from rebasing/ padding the GDP while borrowing to pay workers salaries?

so you want to be useless for 16 years ,which kind agbado mentality be dis.

zero8zero:
These are the lazy and unthinking yoots that want to take over leadership, If today's youth are this dumb, we rather continue with the old horse.
Tell us, if there's anything wrong in intervening in the market to provide liquidity?. CBN is not pegging dollar rate, if it did, then you can be talking about defending the naira. Unless you can tell us the official rate the dollar is pegged.
We know you lost the election, we know you're bitter, but its worse when you combine lack of intelligence to it.
Someone who's supporting Trump that has plunged American's economy into catastrophic disaster within two days is also exposing his low mental capacities. God have mercy.

Thats ur mother know u are a fool?? Call her n ask her

zero8zero:
These are the lazy and unthinking yoots that want to take over leadership, If today's youth are this dumb, we rather continue with the old horse.
Tell us, if there's anything wrong in intervening in the market to provide liquidity?. CBN is not pegging dollar rate, if it did, then you can be talking about defending the naira. Unless you can tell us the official rate the dollar is pegged.
We know you lost the election, we know you're bitter, but its worse when you combine lack of intelligence to it.
Someone who's supporting Trump that has plunged American's economy into catastrophic disaster within two days is also exposing his low mental capacities. God have mercy.

What rate did the CBN use in providing liquidity and how does that rate reflect the true value of naira

zero8zero:
Lol, this guy is an Illiterate, if your type was the face of opposition leader, the world would have thought Nigerians are this dumb.
Seunmsg, abeg try not reply this guy. I have never seen someone more dull.

It is a sign of emptiness to resort to insults in the course of public discussion

seunmsg:
CBN is a monetary institution and they determine where they want the exchange rate to be. Floating the exchange rate doesn’t mean global shocks won’t happen once in a while. That is the essence of having a strong reserve to rely on for stability when external factors beyond your control happen. Foreign reserves are not for decorations.


Only a senseless person will be trying to feign ignorance of how the reserve got to $3.9billion. It was barely $10billion net reserve when Jonathan was going and crude oil went to as low as $25 PB when Buhari became president. We entered a recession and as we were exiting gradually, the global pandemic started in 2019 and by 2020 to 2021 80% of global economy was on lock down. Crude oil went as low as $1PB

Despite all these, you guys wanted pms subsidies to remain and exchange rate to remain at $1/N450. Nothing was coming in and our consumption never changed. So, where did you think Buhari got the dollars to pay for everything?

Funny enough, you hypocrites are still blaming Tinubu for doing the exact opposite of Buhari. You blame Buhari for maintaining the subsidy regime and pegging the Naira and still blame Tinubu for floating the Naira and ending the wasteful subsidy. So, what exactly is your point again Mr. Hypocrite?

Do you mean CBN is fixing exchange rate? Does that not negate the idea behind floating the currency

The reserve was $28bn when Jonathan left which you all called for his head for and he paid subsidy and managed fx rates too.

Folks like you claimed N200 to $1 was an eyesore under Jonathan. Today, you're celebrating and writing long grammar in defence of N1500 to $1

And crude oil was never $1pb. Reduce your lies abeg

Your hypocrisy is laid bare in the fact that Tinubu is now returning to the same ideas Okonjo-Iweala advocated and now you're finding wisdom in them after villifying the then govt with so much vile and bile. You're just running round in circles headlessly.

Stay one place. Which is correct? Fixing exchange rate or sinking sorry floating it?

Agbegbaorogboye:
What rate did the CBN use in providing liquidity and how does that rate reflect the true value of naira

At NAFEM rate, and that's why the the official and black market rate are almost at par.

seunmsg:
Our debt actually decreased from $108billion in 2023 to $94billion as at this year. Tinubu has paid back over $14billion net since coming on board.

And to cure your ignorance, we don’t pay our national debt with Naira. We pay with dollars. So, converting our national debt to naira just to make it look like it has increased when in reality, the loans are dollar denominated only shows your ignorance or hypocrisy or both. Only dumb heads like Peter Obi and his empty supporters can make such argument.

What about Crude swap deals? You're making it sound like Tinubu produced money out of thin air. Are we no longer swapping crude for loans?

zero8zero:
At NAFEM rate, and that's why the the official and black market rate are almost at par.

How did they arrive at the NAFEM rate? Is CBN a player in the market or regulator

Agbegbaorogboye:
How did they arrive at the NAFEM rate? Is CBN a player in the market or regulator

Dumb and Illiterate question.

zero8zero:
Dumb and Illiterate question.

Just say you don't know