A report published by AIICO Capital Limited has revealed that Olayemi Cardoso-led Central Bank of Nigeria spent a whopping $669 million defending the naira within the first quarter of the year.
ENigeria News reports that the exchange rate had been hovering between N1,500 and N1,600 per dollar since the beginning of the year, with Cardo and his team attributing it to the economic reforms championed by President Bola Ahmed Tinubu, but a recent report has further exposed the alleged false claims of the apex bank and its leadership.
According to a report by investment firm AIICO Capital Limited, dollar sales totaling $668.8 million were carried out amid dwindling dollar inflows and rising offshore demand for foreign exchange.
The report further claimed that Apex Bank and its leadership under Cardoso had allegedly deployed the quoted amount in foreign exchange interventions during the first quarter of 2025 in a bid to defend the naira from further depreciation.
ENigeria News reports that the report highlighted that despite these interventions, the Nigerian currency continued to face significant pressure, with the naira depreciating by 2.97 percent in March alone, sliding from ₦1,492.49/$ to ₦1,536.82/$. The exchange rate opened the month at ₦1,510/$, and elevated demand—particularly from foreign portfolio investors and local corporations—continued to weigh on the market. The parallel market reflected similar strain, as the naira weakened by ₦43.50 to close at ₦1,536.00/$.
In an additional measure to stabilise the parallel market, the CBN directed Bureau de Change operators to purchase $25,000 from authorized dealer banks at the official exchange rate. Despite these efforts, Nigeria’s external reserves declined to $38.31 billion by the end of the quarter, reversing from a three-year peak of $43 billion due to debt service obligations and continued dollar sales.
The AIICO report also noted that although mid-month liquidity was briefly supported by CBN’s dollar injections, it was not sufficient to meet the sustained demand in the Nigerian Foreign Exchange Market. Consequently, the naira remained under pressure even with the central bank’s continued interventions and minor gains.
The currency volatility in Nigeria is unfolding against a backdrop of global economic uncertainty. President Donald Trump’s sweeping tariffs have rattled international markets, with stocks dropping at the opening on Monday, adding to investor concerns and putting additional pressure on emerging market currencies, including the naira.
