Global Trade Tensions Impact Naira Value, CBN Intervenes
By Patience Ikpeme
The Nigerian Naira experienced a decline in value on Friday, attributed in part to the effects of US President Donald Trump’s recent tariff actions on global trade.
The Central Bank of Nigeria (CBN) acknowledged that “the recent announcement of new import tariffs by the United States government on imports from several economies” has initiated a period of adjustment across global markets.
The apex bank also noted “recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies.”
Dr. Omolara Omotunde Duke, Director of the Financial Markets Department, provided an update on Saturday, stating, “Crude oil prices have also weakened – declining by over 12% to approximately US$65.50 per barrel, from the projected $75 per barrel thus- presenting new dynamics for oil-exporting countries such as Nigeria.”
The Naira’s value fell to N1,625 on April 4th, from N1,570 the previous day. In response, the CBN disclosed that “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 US$197.71 million through sales to Authorized Dealers.”
Dr. Duke stated that, “This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
The CBN said it would continue to monitor global and domestic market conditions and expressed confidence in the “resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.”
The CBN also reminded “All Authorized Dealers to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties.”
