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<p class="" data-start="89" data-end="349"><a target="_blank" href="http://gistreel.com/tag/naira"><strong>Nigeria’s naira</strong></a> suffered a sharp blow on April 4, 2025, closing at â¦1,600 per dollar on the official market — its weakest level since December 2024.</p>
<p class="" data-start="89" data-end="349">This came amidst the global financial markets staggering from the ripple effects of <a target="_blank" href="http://gistreel.com/tag/trump"><strong>U.S. President Donald Trump</strong></a>’s new <strong>wave of tariffs</strong>.</p>
<p class="" data-start="351" data-end="653">Data from the <a target="_blank" href="http://gistreel.com/tag/cbn"><strong>Central Bank of Nigeria</strong></a> (CBN) confirmed the 1.9% depreciation from the previous day’s rate of â¦1,569/$1. The intraday trading window also showed significant volatility, with highs of â¦1,625/$1 and lows of â¦1,519/$1, pointing to a market struggling to find balance amid mounting pressure.</p>
<p class="" data-start="655" data-end="962">The latest depreciation means the naira has already weakened by 3.9% in just the first four days of April, after closing March at â¦1,537/$1. The NFEM (Nigerian Foreign Exchange Market) average exchange rate closed at â¦1,567/$1, marking the lowest level seen this year and the weakest since December 4, 2024.</p>
<h3 class="" data-start="964" data-end="1007">CBN reserves rise, but concerns persist</h3>
<p class="" data-start="1009" data-end="1278">In a contrasting development, the CBN revealed a rise in its Net Foreign External Reserves (NFER), which stood at $23.11 billion as of the end of 2024 — the highest level recorded in over three years. This is a notable improvement from $3.99 billion at the end of 2023.</p>
<p class="" data-start="1280" data-end="1523">Analysts have responded with cautious optimism. While the uptick in reserves reflects better reserve management, some financial experts warn that Nigeria’s reliance on short-term portfolio inflows still leaves it vulnerable to external shocks.</p>
<p class="" data-start="1525" data-end="1830">Sources close to the central bank say preparations are underway for a new round of foreign currency forwards — contracts that lock in future exchange rates. These may be more favorable to Nigeria compared to those previously used during the Emefiele era, which were often criticized for unfavorable terms.</p>
<h3 class="" data-start="1832" data-end="1873">Trump tariffs trigger global sell-off</h3>
<p class="" data-start="1875" data-end="2229">The latest downturn in the naira’s value follows heightened volatility in global markets triggered by <strong>President Trump’s imposition of sweeping tariffs</strong> on all U.S. trading partners, dubbed “Liberation Day.” The move, which includes a 14% tariff on Nigerian imports into the U.S., caused widespread panic in financial markets, prompting a global sell-off.</p>
<p class="" data-start="2231" data-end="2430">Though the 14% rate is considered a “concession” from the original 28% tariff Nigeria qualified for under Trump’s criteria, the real impact may be indirect — especially on Nigeria’s vital oil sector.</p>
<h3 class="" data-start="2432" data-end="2477">Crude oil dips below $70 — budget at risk</h3>
<p class="" data-start="2479" data-end="2796">Crude oil prices plunged below $70 per barrel for the first time this year amid growing fears of a global recession reminiscent of the COVID-19-era downturn. For Nigeria, this spells danger. The country’s 2025 budget is anchored on a benchmark of $75 per barrel and a production target of 1.8 million barrels per day.</p>
<p class="" data-start="2798" data-end="2970">Analysts warn that if oil prices remain low, Nigeria could struggle to earn the foreign exchange needed to stabilize the naira, deepening economic woes in the months ahead.</p>
<p class="" data-start="2972" data-end="3177">As the global economic outlook darkens and trade tensions rise, all eyes are on the CBN’s next move and whether its reserve buffer and forward strategies will be enough to prevent a deeper currency crisis.</p>
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