CBN Boosts Naira With $70m FX Injection as Reserves Hit $42.2bn

The Central Bank of Nigeria (CBN) strengthened the naira this week by selling $70 million to authorised dealer banks in the foreign exchange market, a move that eased dollar pressures and bolstered market confidence.

Following the intervention, the naira appreciated at the official window to N1480 per dollar, reflecting improved liquidity conditions amid a steady rise in external reserves.

Nigeria’s foreign reserves climbed to $42.225 billion, the highest level since 2021, according to MarketForces Africa. The figure represents a $5 billion increase since June, when reserves stood at $37 billion.

Analysts at Cowry Asset Limited noted that the reserve build-up, supported by stronger FX inflows and consistent CBN interventions, has enhanced the apex bank’s ability to manage supply-demand gaps. They added that this improves investor confidence in the short-term stability of the naira.

In the global oil market, prices rose as supply concerns resurfaced after Ukrainian strikes on Russian energy infrastructure prompted Moscow to curb fuel exports. Brent crude gained 0.33% to $69.65 per barrel, while WTI crude climbed 0.51% to $65.31 per barrel. Both benchmarks remain on track for weekly gains of more than 4%.

Nigeria’s Bonny Light crude outperformed, rising 1.79% to $70.90 per barrel. The twin boost of firmer oil prices and higher reserves gives Nigeria stronger protection against external shocks, while reinforcing the CBN’s capacity to defend the currency and safeguard macroeconomic stability.

Cowry Asset further projected that the naira would remain relatively stable across markets, supported by higher US dollar inflows, reserve accretion, and sustained CBN interventions. Analysts also highlighted that stronger oil prices could further bolster Nigeria’s external buffers and investor sentiment.