The Central Bank of Nigeria (CBN) has initiated an aggressive foreign-exchange intervention aimed at reducing pressure on the naira and stabilising Nigeria’s volatile currency market.
According to multiple insider sources, the apex bank is injecting significant dollar liquidity through authorised dealers, targeting high-demand segments that have pushed the parallel market rate to record highs.
The intervention, described by analysts as one of the boldest in recent months, is part of a broader strategy to weaken speculative trading and restore confidence among importers, manufacturers, and investors. The CBN’s decision comes amid rising concerns over inflation, escalating import costs, and persistent pressure on foreign reserves.
Experts note that increased liquidity typically forces currency speculators to shelve hoarding behaviour, thereby narrowing the gap between official and parallel market rates. If sustained, the move could ease inflationary trends in key sectors such as fuel, food, pharmaceuticals, and consumer goods.
However, economists warn that FX interventions alone will not deliver long-term stability. Structural issues—including low export earnings, weak local production, and high import dependence—continue to undermine Nigeria’s currency strength. To achieve sustainable improvement, analysts recommend deeper reforms in oil revenue management, export diversification, and fiscal coordination.
Businesses across Lagos, Abuja, Kano, and Port Harcourt are monitoring the situation closely. Many import-dependent traders say any ease in dollar rates will directly translate into lower prices for consumers. Meanwhile, ordinary Nigerians are hopeful that the intervention will reduce the soaring costs of household essentials, school fees, and international travel.
