Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

In order to stabilise the naira and reduce liquidity concerns in the currency market, the Central Bank of Nigeria invested a total of $4.1 billion in the foreign exchange market during the first half of 2025.

The most recent H2 2025 Outlook report from CSL Stockbrokers included this amount, which is more than three times the $1.3 billion reported during the same period in 2024.

The Punch reported that data from the report was analysed, and the results showed a 215% rise. CSL Stockbrokers Limited is a member of the Nigerian Stock Exchange in addition to the FCMB Group.

In light of sluggish oil revenues, muted foreign portfolio investment inflows, and uncertainty surrounding external financing, industry observers voiced doubts about the currency defense strategy's durability at this time.

Members of the Organised Private Sector countered that no responsible central bank would let the market decide the value of its currency on its own without intervening in some way to maintain stability.

The CSL Stockbrokers' study claims that the CBN's forceful involvement shows a greater dedication to protecting the naira in the face of ongoing volatility and poor capital inflows.

Due in major part to these FX injections, the naira, which began the year at N1,535 to the US dollar on the official market, increased somewhat to N1,530/$ by the end of June.

The report read,

“The local currency, which opened the year at around N1,535/$ in the official market, posted a marginal appreciation to close the first half at around N1,530/$, reflecting a YTD gain of 0.4 per cent. This relative stability was largely underpinned by sizable interventions from the CBN, which we believe helped contain depreciation pressures, especially during periods of heightened volatility.

“Notably, the apex bank injected about $4.1bn into the FX market in H1 2025, well above the $1.3bn provided during the same period last year, demonstrating a stronger commitment to supporting market liquidity.”

According to CSL, the apex bank's actions were particularly noticeable in April, when the introduction of fresh US trade tariffs caused investor risk aversion to spike, causing the naira to momentarily fall to N1,630/$.

“It is worth highlighting that in April, when foreign currency inflows were limited and the exchange rate temporarily weakened to as high as N1,630/US$, amid investor risk aversion triggered by the announcement of US trade tariffs, net FX inflows from the CBN surged to the highest level so far this year,” the report stated.

Notwithstanding the measures, CSL voiced doubts about the currency defense strategy's long-term viability, pointing to low oil profits, muted foreign portfolio investment inflows, and unpredictability surrounding outside funding.

Due to decreased prices and production limitations, oil exports, which made up over 86% of Nigeria's total exports in 2024, are expected to decline by 20% annually to $36.4 billion in 2025.

Regarding the capital market, the report noted that foreign involvement in Nigeria's stock market increased from 20% in the same period of 2024 to 29% as of May 2025.

The fact that foreign outflows still exceeded inflows, however, suggests that investor caution is still present. CSL cautioned that there may be less room for further naira appreciation in the second part of the year if FX inflows continue to be pressured.

Legit.ng reported that Nigeria’s local currency, the naira, recorded a major gain against the US dollar, closing at N1,518.88 at the official market as of Monday, July 15, 2025.

This followed a targeted foreign exchange (FX) intervention by the Central Bank of Nigeria (CBN), aimed at improving market liquidity and easing pressure on the naira.

According to spot FX data from the CBN, the naira’s strength came on the heels of $50 million in sales to authorised dealers during the previous week.

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Source: Legit.ng