Crude oil prices have experienced a sharp decline, dropping by over 12% to around $65.50 per barrel, following the introduction of sweeping trade tariffs by President Donald Trump against several countries. Prior to these tariffs, oil prices had been trading above $70 per barrel.
The OPEC basket of twelve crudes was priced at $75.35 per barrel on Thursday, down from $77.44 the previous day, according to the OPEC Secretariat’s calculations. The drop in oil prices comes as a result of global trade tensions, which have significantly impacted oil markets.
As Nigeria is heavily reliant on crude oil exports for approximately 90% of its foreign exchange earnings, the price drop has raised concerns about the country’s economic stability. In response to the changing dynamics in the oil market, the Central Bank of Nigeria (CBN) took swift action to support market activity. On Sunday, the CBN issued a circular stating that it had facilitated the provision of $197.71 million through sales to authorized dealers on Friday.
The apex bank emphasized that this move was in line with its efforts to maintain adequate liquidity and ensure the orderly functioning of the foreign exchange market. The CBN also noted that recent movements in the foreign exchange market between April 3 and 4, 2025, reflected broader global economic shifts affecting emerging markets, particularly in light of the new tariffs announced by the United States.
These developments have resulted in a period of adjustment across global markets, and the weakened crude oil prices present new challenges for oil-exporting countries like Nigeria, which is particularly vulnerable due to its reliance on oil revenue.
The CBN’s intervention aims to mitigate the impact of these shifts and maintain stability in Nigeria’s foreign exchange market.
