The sudden decline of the naira to about N1,600 to the dollar has been attributed to broader global macroeconomic shifts currently affecting several emerging markets.

A statement signed by the Director, Financial Markets Department of the Central Bank of Nigeria (CBN), Dr Omolara Omotunde Duke, noted the recent movement in the foreign exchange market.

“The CBN has 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,” the statement read in part.

The CBN said the recent developments were 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.

It further explained that the pronouncement has affected the economic mainstay of the Nigerian economy as crude oil prices have declined by over 12 per cent.
The decline to about $65.50 per barrel, the apex bank said, presents a new dynamic for oil-exporting countries such as Nigeria.

To stabilise the naira and in line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN said it facilitated market activity last Friday, April 4, 2025, with the provision of $197.71 million through sales to Authorized Dealers.It added: “This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”

The apex bank disclosed that it will continue to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.

It 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.