The Central Bank of Nigeria (CBN) deployed an estimated $2.5 billion into the foreign exchange market in April to stabilise the naira against mounting pressures. The move followed increased demand for the US dollar amid capital flight and heightened currency hedging activities by investors.
Despite the interventions, the naira depreciated by 3.90% over the month. The apex bank’s aggressive FX sales came in response to a spike in offshore investor exits and general demand for foreign currency, causing strain on the local unit.
The naira began April trading in the N1,525–N1,535 range, buoyed by moderate FX inflows and support from the CBN. However, mid-month pressure—driven by rising offshore demand and declining global oil prices—pushed the rate as low as N1,570 per dollar in the interbank market.
Over the four-week period, the central bank sold an estimated $2.48 billion. Data from AIICO Capital Limited indicates that weekly FX sales amounted to $634.9 million, $280 million, $197.7 million, and $116 million, respectively. Additionally, oil and gas sector inflows contributed approximately $1.31 billion during the period.
Analysts observed that the CBN’s interventions helped to narrow bid-offer spreads to between N2 and N3 and reduced market volatility. Still, the naira ended April at N1,596.69 in the official window, while the parallel market rate closed at N1,606.50.
External reserves also declined by $370 million to $37.93 billion, reflecting sustained FX interventions and tepid oil inflows. In a macroeconomic commentary, Verto noted that the demand for Non-Deliverable Forwards (NDFs) pushed the Nigerian Autonomous Foreign Exchange Market (NAFEM) slightly above the 1600 level, while the parallel market maintained a 0–2% spread.
“Overall, the CBN appears to be sustaining its daily interventions, injecting between $50 million and $100 million into the market—less to anchor the exchange rate and more to maintain a steady trickle of supply into NAFEM,” Verto stated.
To attract foreign investment and control liquidity, the central bank has ramped up its issuance of OMO bills at higher yields following a lull in Q1 activity. The past three weeks have seen three OMO auctions, which drew strong demand despite yields rising roughly 100 basis points above the secondary market benchmarks.
Verto concluded that these successful auctions strike a balance between curbing liquidity and managing the government’s interest payment obligations.
 deployed an estimated $2.5 billion into the foreign exchange market in April to stabilise the naira....){kind=link}