The Central Bank of Nigeria (CBN) said on Saturday that it would inject $197.71 million into the country’s foreign exchange (FX) market. The bank stated that the step is intended to provide sufficient liquidity and assist the market’s orderly operation in view of the recent hike in import taxes enacted by the US government. According to a statement issued and signed by Omolara Duke, Director of the CBN’s Financial Markets Department, the decision is consistent with the bank’s overall goal of maintaining a “stable, transparent, and efficient foreign exchange market.”

“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 $197.71 million through sales to Authorized Dealers,” according to a statement.

The CBN stated that it noted recent moves in the foreign exchange market between 3-4 April, which mirrored broader global macroeconomic trends now affecting several Emerging Market and Developing economies. According to data posted on the CBN website, the naira closed at N1,567/$1 on Friday, down over 1% from Thursday’s N1,553/$1 rate. “These developments were as a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets,” according to a statement.

Last Wednesday, US President Donald Trump announced a 10% “minimum baseline tariff” on all imports into the country, with many countries, including Nigeria, facing significantly higher tariffs. Nigeria’s main exports to the US include crude oil, petroleum gas, and nitrogen-based fertilizers; however, the US mostly transports cars, refined oil products, and wheat to Nigeria.

By extension, the latest policy jeopardizes the trade of Nigerian goods in the United States, particularly crude oil, Nigeria’s main export and the lifeblood of its economy.

On Saturday, the CBN reported that crude oil prices had fallen by more than 12% to around $65.50 per barrel. According to the bank, this creates fresh opportunities for oil-exporting countries like Nigeria. The CBN stated that it will continue to watch global and domestic market conditions and is confidence in the robustness of Nigeria’s foreign exchange system, which is structured to adapt to developing fundamentals. “All Authorised Dealers are reminded 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,” said the news release.