Naira Hits New Low, Trades Above ₦1,610/$1 Despite CBN Dollar Sales

The Nigerian naira dropped to a new low on Monday, surpassing ₦1,610 per US dollar in the official foreign exchange market. This is a decline from ₦1,600/$1 on Friday and ₦1,569/$1 on Thursday, based on data from the Central Bank of Nigeria (CBN). The continued drop shows that the naira is still under pressure.

At the close of April 7, the Nigerian Foreign Exchange Market (NFEM) rate was ₦1,612, while the highest rate for the day reached ₦1,655. This is despite several efforts by the CBN to support the currency.

To support the naira, the CBN sold around $200 million to approved dealers on Monday. This followed a $197 million sale on Friday and $124 million the previous week. The CBN said the sales were made to improve liquidity in the market and help reduce pressure on the currency.

In a circular sent to banks on April 4, the CBN said the interventions were also in response to recent economic changes, including new import tariffs announced by the United States. It said the sales were part of its goal to maintain a stable and transparent foreign exchange market.

Over the past year, the naira has lost more than half of its value. In 2023, President Bola Tinubu’s government merged the country’s multiple exchange rates to attract foreign investment and improve the economy. However, the move did not bring in the expected foreign capital and added more pressure on the naira.

The CBN’s approach of selling dollars at lower-than-market rates has also drawn criticism. Some experts say this has not helped the naira and instead creates more problems in the forex market.

At the same time, inflation remains high. According to the National Bureau of Statistics, Nigeria’s inflation rate dropped slightly to 23.18 per cent in February 2025 from 24.48 per cent in January. The drop came after the inflation data was updated to reflect more current spending habits. Still, the high inflation rate continues to reduce the value of people’s income and savings.

Despite the CBN’s efforts, the naira remains weak. Analysts say the country needs more substantial economic reforms to stop the currency from losing more value.

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