Oil prices plunged sharply on Friday, capping off a tumultuous week marked by rising global trade tensions, triggered by United States’ imposition of export tariff hikes on various countries.
Brent crude fell $4.68 or 6.67% to close at $65.46 per barrel, while U.S. West Texas Intermediate (WTI) shed $5.07, or 7.6%, to settle at $61.88— both benchmarks heading for their lowest closes since the height of the COVID-19 pandemic in 2021.
The weekly decline marks the steepest in more than two years, triggered by China’s imposition of fresh tariffs on U.S. goods in retaliation to Washington’s recent trade measures, fuelling fears of a global recession.
The downturn in oil prices continues to weigh on Nigeria’s external reserves as the country’s gross foreign exchange reserves declined by 0.4% week-on-week to $38.16 billion as of Thursday, reflecting weak oil export earnings amid falling crude prices.
In the FX market, the naira traded mixed across different market segments at the close of the week. At the official window, the local currency weakened by 1.81% to close at N1,567.02/$, while at the parallel market, it appreciated by 1.63% week-on-week to an average of N1,535/$, as demand softened slightly.
The mixed performance was despite the fresh injection of $197.71 million into the foreign exchange (FX) market on Friday, April 4, 2025 by the Central Bank of Nigeria (CBN) as part of its ongoing commitment to ensuring adequate liquidity and maintaining orderly market functioning.
Omolara Omotunde Duke, Director of the Financial Markets Department at the apex bank on Saturday reiterated in a statement that the Bank’s stance on maintaining market integrity and operational transparency.
The statement read, “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71 million through sales to Authorized Dealers.
“This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
Looking ahead, analysts expect a relatively stable outing for the naira as a new week commences today based on the continued interventions by the CBN aimed at managing volatility and preserving FX stability.
