CBN Injects $197.71m to Stabilize FX Market as Naira Falls to N1,600/$ Under Pressure From Trump’s 14% Tariff on Nigeria

Friday, the Central Bank of Nigeria (CBN) injected $ 197.71 million into the foreign exchange market (FX) in order to restore calm while the Naira crashed at 1,600 dollars – the lowest official exchange rate since December – under the increasing pressure of global economic shocks, including an import rate of 14% recently imposed in Nigeria by Nigeria by Nigeria UNITED STATES.

The intervention, confirmed in a press release published on Saturday by Dr. Omolara OmoTunde Duke, director of the Department of Financial Markets, marks one of the most direct responses of the Apex bank to the turmoil triggered by the sudden hike of the American government in the rates on a wide range of imports, including goods from Nigeria.

“In accordance with its commitment to ensure adequate liquidity and to support the ordered operation of the market, the CBN has facilitated market activity … with the supply of $ 197.71 million thanks to sales to authorized dealers,” the press release said.

The bank said that this decision is aligned with its broader objective of promoting a stable, transparent and effective exchange market and has reiterated its determination to maintain market integrity in an increase in volatility.

Trump’s price hit Nigeria?

But beyond the language of routine policy is a more in -depth concern: the strong depreciation of Naira is increasingly linked to Trump’s decision to impose new prices on several countries – including Nigeria – as part of a broader commercial overhaul that begins to resonate on the global markets.

According to economists, the announcement by the American president of a reference rate of 10% on most imports, and a distinct rate of 14% on certain Nigeria products, has directly contributed to the decline in Naira. The impact was rapid. Nigeria, which depends strongly on oil exports and survey of dollars, is now in a hurry between the drop in crude prices and the increase in commercial barriers.

Analysts claim that Nigeria is particularly vulnerable to external shocks due to its excessive dependence on imports and its narrow export base. American prices increasing costs for Nigerian products abroad – and the reduction in the competitiveness of Nigeria – Dadancian entries should decrease more. This, in turn, made more difficult for the CBN to defend the Naira without exhausting its already tense reserves.

Naira falls to N1,600 / $ 1 – still since December

CBN data show that the Naira ended on Friday at 1,600 Nairas, down 1.9%, against 1,569 N. of the day before. It marks the lowest official exchange rate since December 4, 2024, when the currency closed at 1,608 N.

Intra-day transactions still suggest broader instability. The Naira briefly affected a summit of 1,625 n before retiring, while certain trades have settled as low as N1.519 – illustrating a wide range of uncertainty of the prices of dealers. The average Nigerian foreign exchange market rate (NFEM), which smooths the daily tips, has closed 1,567 n – the sweeter level so far in 2025.

During the first four days of April negotiation, the Naira has already lost 3.9% of its value, after the fence from March to 1,537 N.

Market volatility has renewed questions about the effectiveness of the Nigeria Fx reform strategy, which aimed to allow Nairas to float more freely in accordance with market demand and the dynamics of supply. Economists think that without stamps, such a system leaves the currency dangerously exposed to external opposites.

Economists call for urgent action

Naira’s dramatic weakening has aroused new warnings from economists who say that Nigeria must urgently revise its economic gaming book in the light of new global realities. Several experts have urged the government to immediately create a high -level response team focused on the attenuation of Trump’s business policies on the already fragile economy of Nigeria.

There is growing support for a mixture of political responses. Economists have urged the federal government to accelerate the diversification of exports, especially in non-petroleum sectors such as agro-treatment, solid minerals and services. They also recommend that Nigeria is starting to explore bilateral commercial negotiations with the United States to negotiate help or any exemptions from newly introduced prices.

In addition, some have suggested rebuild exchange pads through diaspora obligations and concessional loans to strengthen short -term liquidity in Nigeria. There are also calls for a reassessment of the budgetary assumptions of 2025, in particular around oil references and projected dollars, which can no longer be realistic given recent developments.

Another line of thinking is that the CBN offers more structured FX support for the main sectors of the economy dependent on importation in order to avoid additional disturbances in the supply chain that could supply inflation. In parallel, there is also increasing pressure for CBN to intensify transparency around its FX intervention strategy, with clear and predictable signals to prevent panic on the financial markets.

Although the CBN has not committed to defending the Naira daily, the tone of its last declaration suggests that it is ready to act again if the market conditions worsen. Dr. Duke noted that the bank would continue to closely monitor the global and national financial conditions and is ready to intervene more if necessary to maintain market order.

The CBN has also called all dealers authorized to maintain the Nigeria FX market code, urging strict compliance and high ethical standards in all transactions with customers and counterparts.