Economy
CBN targets single-digit inflation in three years
The Central Bank of Nigeria (CBN) has set its sights on reducing inflation to a single digit in the medium to long term, following the recent rebasing of the Consumer Price Index (CPI) and subsequent decline in inflation to 24.48 per cent.
CBN Governor, Dr Olayemi Cardoso, who spoke yesterday at a press briefing after the first Monetary Policy Committee (MPC) meeting of 2025, reiterated the apex bank’s commitment to orthodox monetary policies, noting that the positive outcomes so far indicate that inflation is trending downward.
He said that after two days of deliberation, the MPC decided to maintain all key monetary policy parameters, including the Monetary Policy Rate (MPR) at 27.50 per cent, the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) at 50.00 per cent for Deposit Money Banks and 16.00 per cent for Merchant Banks, and the Liquidity Ratio at 30.00 per cent.
Clarifying the impact of the rebased CPI, Cardoso explained that the lower inflation figure should not be misinterpreted.
He underlined the need to analyse more data before drawing comparisons, noting that the CBN is currently assessing the figures and will provide further guidance in due course.
Despite the complexities, he pointed out that inflation is gradually declining, supported by the recent stability and appreciation of the foreign exchange rate, with the differential between the official and parallel markets now less than one percent.
He stressed the critical importance of collaboration between monetary and fiscal authorities in sustaining recent economic improvements.
He cited the recent Monetary Policy Forum as an example, where stakeholders from the organised private sector, Bureau de Change operators, and government representatives, including the Minister of Finance, participated.
Cardoso noted that both sides are committed to deepening their dialogue and holding regular meetings to address key economic issues proactively.
Addressing concerns about the impact of elevated borrowing costs on economic growth, the CBN Governor assured that the apex bank’s primary objective is to stabilize the foreign exchange and financial markets.
He expressed confidence that such stability would attract increased foreign investments, stimulating the much-needed economic growth.
He also highlighted the competitiveness of the Nigerian currency, which has spurred growing interest from international investors.
Cardoso said that improved oil production, reaching 1.54 million barrels per day by the end of January 2025, would strengthen Nigeria’s current account position and positively impact external reserves. Despite prevailing macroeconomic challenges, the MPC observed that the banking sector remains resilient. However, the Committee urged the CBN to maintain vigilant oversight, particularly in light of ongoing banking system recapitalisation, ensuring that only quality capital is injected.
The MPC noted several factors expected to positively influence price dynamics in the near to medium term, including the stabilisation of the foreign exchange market, the moderation of Premium Motor Spirit (PMS) prices, and the federal government’s efforts to improve security in food-producing areas.
The Committee emphasised the need for continued collaboration between monetary and fiscal authorities to maintain and build upon these gains.
Additionally, the MPC acknowledged improvements in the external sector, with the convergence of exchange rates between the Nigeria Foreign Exchange Market (NFEM) and Bureau de Change (BDC) operators.
The Committee commended CBN’s recent measures, such as the Electronic Foreign Exchange Matching System and the Nigeria Foreign Exchange Code, aimed at enhancing transparency and credibility in the forex market.
The MPC expressed confidence that recent monetary and fiscal policy measures would attract increased foreign direct investment, portfolio inflows, and diaspora remittances as investor confidence grows.
The Committee also assured of its commitment to sustaining these measures to anchor inflation expectations, ease exchange rate pressures, deepen financial inclusion, and enhance the effectiveness of monetary policy transmission mechanisms.
The local currency (abokiFx) opened at ₦1,560.00 per $1 at the parallel market, otherwise known as the black market, today, Monday, 7 April 2025, in Lagos, Nigeria, after it closed at ₦1,550.00 per $1 on Sunday, 6 April 2025.
Black market dollar to naira exchange rate today, 7 April 2025, also known as Aboki forex, can be accessed below.
NOTE: The exchange rate changes hourly. It depends on the volume of dollars available and the Demand. What this means is that…you can buy or sell 1 dollar at a certain rate and the price can change (high or low) within hours.
The official naira black market exchange rate in Nigeria today, including the Black Market rates, Bureau De Change (BDC), and CBN rates. Please note that the exchange rate is subject to hourly fluctuations influenced by the supply and demand of dollars in the market. As of now, you can purchase 1 dollar at a certain rate now however, it’s important to remember that the rate can shift (either upwards or downwards) within hours.
Oil prices plunged this week to $65 per barrel as the United States import tariffs and an unexpected OPEC+ supply hike erased $10 per barrel from global benchmarks.
The price appreciated last week when US President Donald Trump imposed tariffs on any country that buys crude from Venezuela.
However, oil prices turned around the corner as of Friday, with Brent falling to $65, the first time since 2021.
According to oilprice.com, the combined effect of Trump’s import tariffs, OPEC+’s inopportune decision to speed up the unwinding of production cuts, and China’s retaliatory actions wiped off $10 per barrel from global oil prices, “with ICE Brent falling below $65 per barrel for the first time since August 2021.”
The US West Texas Intermediate crude futures lost $4.96, or 7.4 per cent to end at $61.99.
“Seeing backwardation barely change compared to the beginning of the week, one could assume that US tariffs are the defining factor for the price change. Nevertheless, this week will not go down well in the history of oil markets,” oilprice.com reports.
China’s retaliatory tariffs on US goods have escalated a trade war that has led investors to price in a higher probability of recession.
China, the world’s top oil importer, announced it will impose additional tariffs of 34 per cent on all US goods from April 10.
According to Reuters, nations around the world have readied retaliation after Trump raised tariffs to their highest in more than a century.
Aside from the tariffs, another factor that further pressured oil prices was the Organisation of the Petroleum Exporting Countries and Allies’ decision to advance plans for output increases.
The group now aims to return 411,000 barrels per day to the market in May, up from the previously planned 135,000 bpd.
The Central Bank of Nigeria has injected $197.71m into the foreign exchange market on Friday, April 4, 2025, as part of its commitment to ensuring adequate liquidity and maintaining orderly market functioning.
This was disclosed in a statement on Saturday by the Director of the Financial Markets Department, Dr Omolara Omotunde-Duke, reiterating 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 $197.71m through sales to authorised dealers. This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
The CBN said the intervention was in line with its broader objective of fostering a stable, transparent, and efficient foreign exchange market.
It added that it remained focused on sustaining liquidity levels to support smooth market operations amid ongoing global economic adjustments.
The apex bank said the decision to boost liquidity in the FX market came against the backdrop of significant shifts in the global macroeconomic landscape, which had affected many emerging markets and developing economies, including Nigeria.
It noted that the recent introduction of new import tariffs by the United States on goods from several economies had triggered adjustments across global markets.
It added that crude oil prices—a major revenue source for Nigeria—had dropped by over 12 per cent, settling at approximately $65.50 per barrel.
The CBN said the downturn posed challenges for oil-exporting countries, influencing exchange rate dynamics and market sentiment.
The CBN stressed that it would continue to monitor both global and domestic market conditions. It expressed confidence in the resilience of Nigeria’s foreign exchange framework, which it said was designed to adjust appropriately to changing economic fundamentals.
The bank also urged all authorised dealers to strictly adhere to the principles outlined in the Nigerian FX Market Code, promoting transparency and upholding the highest standards in their transactions with clients and market counterparties.
Meanwhile, Nigeria’s official exchange rate fell to N1,600/$1 at the end of trading on April 4, 2025, as the tariffs imposed during the Trump era continued to impact global markets.
Data from the CBN showed that the naira closed at N1,600/$1, marking a 1.9 per cent depreciation compared to the N1,569/$1 recorded the previous day.
The figure also marked the weakest level the naira had reached since December 4, 2024, when it closed at N1,608/$1. The exchange rate has now weakened by 3.9 per cent in the first four days of April, after closing March at N1,537/$1.
According to the CBN, the exchange rate closed at N1,600/$1 on Friday, marking a 1.9 per cent drop from the previous day.
The intra-day highs and lows were reported as N1,625 and N1,519 to the dollar, respectively. The intra-day high of N1,625 is also one of the highest levels recorded this year, indicating that traders priced the naira at significantly weaker levels.
Conversely, the intra-day low of N1,519/$1 suggests that some traders still priced the naira stronger, possibly betting on short-term interventions.
The NFEM rate, which represents the average exchange rate, closed at N1,567, the weakest the naira has traded this year and since December 4, 2024.
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