The Central Bank of Nigeria has intervened in the foreign exchange market with a provision of $197.71m to authorised dealers as a response to a sharp decline in global oil prices, triggered by recent trade tariffs imposed by US President Donald Trump.
Crude oil prices have dropped by over 12 per cent to approximately $65.50 per barrel, down from above $70 per barrel before the tariffs were announced.
The new tariffs, which affect several countries, have led to shifts in global markets, impacting key sectors, including oil, which remains a critical revenue source for Nigeria.
On Thursday, the price of the OPEC basket of twelve crudes was pegged at $75.35 per barrel, down from $77.44 the previous day, according to OPEC Secretariat figures.
This decline in oil prices poses a significant challenge for Nigeria, which relies on crude oil exports for approximately 90 per cent of its foreign exchange earnings.
In a bid to maintain market stability, the CBN facilitated the sale of $197.71 million to authorized dealers last Friday.
The apex bank emphasised that this intervention is part of its broader goal of ensuring liquidity and supporting a stable and efficient foreign exchange market.
The CBN’s statement highlighted that the recent fluctuations in the foreign exchange market between April 3 and 4, 2025, were influenced by the global macroeconomic shifts, notably the trade tariffs announced by the United States government.
These developments have created new challenges for oil-exporting countries like Nigeria, which must adjust to the weakening oil prices.
As the CBN continues to navigate the shifting global economic landscape, its commitment to maintaining a stable and transparent foreign exchange market remains steadfast.
The bank’s actions are seen as a crucial step in managing the economic ripple effects caused by the decline in oil prices.
