CBN Injects $197.71m to Stabilize Naira Amid Trump Tariffs and Oil Price Decline*

 CBN Injects $197.71m to Stabilize Naira Amid Trump Tariffs and Oil Price Decline

In a decisive move to stabilize Nigeria's foreign exchange market, the Central Bank of Nigeria (CBN) has injected $197.71 million into the market. This intervention comes as global markets face disruptions following the imposition of a 14% import tariff on Nigerian products by U.S.

President Donald Trump. The tariffs have weakened the naira and compounded challenges for Nigeria's oil-dependent economy.

*Impact of Trump’s Tariffs*

The new U.S. tariffs have triggered significant adjustments in global markets, particularly affecting emerging economies like Nigeria. 

The naira has seen increased volatility against the dollar in recent days, reflecting broader macroeconomic shifts. 

According to Omolara Duke, CBN’s Director of Financial Markets Department, these tariffs have added pressure to Nigeria’s foreign exchange market dynamics.

*Decline in Crude Oil Prices*

Adding to the strain is a sharp decline in crude oil prices, which fell by over 12% to approximately $65.50 per barrel. As an oil-exporting nation, Nigeria faces reduced revenue from crude exports, further complicating its economic outlook.

*CBN’s Response*

To counter these challenges, the CBN facilitated market activity on April 4, 2025, by injecting $197.71 million through sales to Authorized Dealers. This action aligns with the Bank’s commitment to ensuring liquidity and maintaining orderly market functioning. 

Duke emphasized that this step is part of CBN’s broader strategy to foster a stable and transparent foreign exchange framework capable of adapting to evolving global conditions.

*Future Outlook*

The CBN assured stakeholders that it will continue monitoring both domestic and international market trends while adhering to principles outlined in the Nigeria FX Market Code. 

Authorized Dealers have been urged to maintain high standards in their dealings, ensuring confidence in Nigeria’s financial system.

As the country navigates these economic headwinds, the CBN’s intervention underscores its proactive approach to safeguarding the naira and stabilizing the economy amid global uncertainties. 

The coming weeks will reveal whether these measures can mitigate the impacts of Trump’s tariffs and declining oil prices on Nigeria’s financial stability.

Reporter *Caleb James*