Naira depreciation despite $197 million intervention is explained by CBN.

 Notwithstanding its $197.71 million intervention to increase liquidity and stability in the nation's foreign currency (FX) market, the

Central Bank of Nigeria (CBN) has provided explanations for the devaluation of the naira.

The Apex bank stated that the country's currency issues are due to a worldwide macroeconomic change brought on by the Trump tariff dispute, which saw the US administration slap tariffs on most nations to protect its economy. The naira witnessed its greatest loss on Friday, April 4.

According to the ICIR, the recent decline in the price of oil globally, which is the primary source of income for the Nigerian government, may also be linked to the naira's depreciation.

The official currency rate plummeted to N1,600/$1 at the close of Friday's trading, according to CBN data.

Since December 4, 2024, when it closed at N1,608/$1, the drop was the worst.

The naira fell by 1.9% from Friday's closing value to Thursday, April 3, when it closed at N1,569/$1.

After completing March at N1,537/$1, the naira also fell 3.9% in the first four days of April, reaching its lowest level on Friday.

The apex bank, CBN's Director of the Financial Markets Department, Omolara Duke, stated in a statement on Saturday, April 5, that the U.S. tariffs have been causing tremors in the world markets.


"With the provision of US$197.71 million through sales to Authorized Dealers, the CBN facilitated market activity on Friday, April 4, 2025, in keeping with its commitment to ensuring adequate liquidity and supporting orderly market functioning," the CBN stated.

It highlighted recent FX market fluctuations from April 3–4, which were indicative of larger global macroeconomic changes that are currently impacting a number of developing and emerging market economies.

Due to the tariffs imposed by U.S. President Donald Trump, Nigeria, like the majority of other nations, is currently undergoing economic shock.
CBN added that this development has had an impact on the naira's value relative to the dollar in recent days.


The United States government recently announced increased import duties on goods from a number of economies, which led to a time of adjustment in international markets and these developments.

Recently, the president of the United States levied a 14 percent import tax on goods originating from Nigeria.

The apex bank noted that "crude oil prices have also weakened, declining by over 12% to approximately US$65.50 per barrel – setting up new dynamics for oil-exporting countries like Nigeria."
The CBN claims that the introduction of FX into the market is consistent with the bank's overarching goal of promoting a stable, open, and effective foreign exchange market.


The CBN is confident in the robustness of Nigeria's foreign exchange system, which is built to adapt suitably to changing fundamentals, and it continues to keep an eye on both domestic and international market conditions.

It also stated, "All Authorized Dealers are reminded to uphold the highest standards in their dealings with clients and market counterparties and to strictly adhere to the principles outlined in the Nigeria FX Market Code."