The Central Bank of Nigeria (CBN) has once again flexed its financial muscle, injecting $70 million into the foreign exchange (FX) market through commercial banks.

The intervention, which comes at a crucial time, has helped the naira strengthen against the US dollar and other major currencies, restoring some level of market confidence.

CBN’s move to stabilise the naira

In recent months, the naira has been on a rollercoaster ride, weighed down by demand pressure and speculative trading.

With inflationary pressures and forex scarcity threatening Nigeria’s fragile economy, the CBN’s direct sale of $70m to banks provided much-needed liquidity to the market.

Analysts say this strategy is consistent with the apex bank’s long-standing approach of intervening in the FX market to curb volatility and ensure stability.

“By pushing fresh dollars into the system, the CBN gave banks the capacity to meet legitimate demand for school fees, medical expenses, travel allowances, and small business imports,” Janet Ogochukwu, senior banker and economist, said.

According to her, the CBN intervention will ease FX crunch further and boost liquidity, giving the local currency more edge.

“Now, importers and exporters can easily access forex at a cheaper rate, leading to reduced prices,” she said.

Market reaction: Naira gains ground

Following the intervention, the naira staged a notable rebound both at the official window and in the parallel market.

At the Nigerian Foreign Exchange Market (NFEM), the naira appreciated as supply pressure eased, while black-market traders also recorded a slowdown in speculative buying.

On September 26, 2025, the naira hit a five-month high of N1,480 per dollar, trading between N1,487 and N1,680 during the day.

For businesses and individuals that had been struggling with dollar scarcity, the fresh liquidity provided immediate relief.

Importers, in particular, expressed optimism that the move would help them access forex at more predictable rates, reducing the uncertainty that has haunted their planning.

Boosting confidence in the banking sector

Beyond currency stability, the CBN’s intervention also sent a strong signal to the banking sector and investors.

Commercial banks, now equipped with additional foreign exchange, are better positioned to serve their customers and alleviate bottlenecks in international payments.

This renewed confidence could help restore trust among foreign investors, many of whom have been cautious due to Nigeria’s forex challenges.

Stable access to FX is also critical in improving Nigeria’s global trade reputation.

What it means for businesses and Nigerians

For the average Nigerian, the naira’s rebound could slow down the sharp rise in the cost of imported goods, especially essential commodities like fuel, food products, and electronics.

Small businesses that rely on imported raw materials may also experience temporary relief from rising costs.

However, experts warn that the sustainability of the naira’s rally depends on consistent inflows and policies that boost dollar supply in the long term. Without structural reforms to increase exports, remittances, and foreign investments, interventions like this may only provide short-term wins.

The bigger picture: What’s ahead for consumers?

The $70m forex injection shows the CBN’s determination to defend the naira and maintain macroeconomic stability.

But the broader question remains: how long can the apex bank continue this firefight without addressing the root causes of Nigeria’s dollar scarcity?

For now, the naira’s rally is a welcome development—especially for businesses and households under pressure. Still, sustained stability will depend on deeper reforms, increased forex inflows, and a diversified economy.

CBN pumps $52m into banks as naira strengthens

Legit.ng earlier reported that the CBN has sold $52 million to authorised banks in the Nigerian foreign exchange market to keep the naira competitive and to maintain FX rate stability.

Data from the apex bank show that the naira appreciated as the CBN's intervention boosted dollar volume at the supply side.

According to AIICO Capital Limited, the CBN's forex intervention, estimated at $52 million, was done at N1.482.55 per dollar and N1.486.10.