CBN reveals how much it lost trying to save the naira from collapse

• The Central Bank of Nigeria (CBN) has incurred a nonaccomplishment of N13.9 trillion arsenic it tries to offset overseas currency liabilities
• The slope stated this successful its 2024 fiscal report, stating that it redeemed bequest contracts with apical US banks
• Available information shows that the nonaccomplishment much than doubled from N6.3 trillion successful 2023 arsenic the apex slope redeemed bequest transactions 

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The Central Bank of Nigeria (CBN) recorded a N13.9 trillion loss, astir $9 billion, arsenic it tries to settee overdue contracts and prune FX liabilities connected its equilibrium expanse and prevention the naira successful 2024.

The nonaccomplishment much than doubled from N6.3 trillion successful 2023 arsenic the apex slope redeemed bequest transactions to trim outstanding forex liabilities, lowering FX vulnerability and boosting reserves.

Olayemi Cardoso-led Central Bank of Nigeria announces N13.9 trillion loss. Credit: CBN/Novatis
Source: Getty Images

CBN records a nonaccomplishment trying to support the naira

In 2023, the slope published its finances to boost capitalist assurance and heighten transparency successful its affairs and overseas speech management.

According to reports, the improvement came arsenic the slope aims to region superior controls, alteration the naira to commercialized freely and lure inflows to extremity dollar scarcity.

The bank’s fiscal reports reportedly raised concerns astir the existent size of Nigeria’s outer reserves and the apex bank’s capableness to enactment the naira, arsenic it disclosed ample deals with JP Morgan and Goldman Sachs involving overseas currency contracts for currency to enactment the government’s revenue.

CBN settles debts to overseas banks

Bloomberg reported that the CBN said successful April that it has settled deals, including swaps and guardant contracts, to bring Nigeria’s nett overseas currency to $23 cardinal arsenic of December past year.

As of April 30, 2025, Nigeria’s gross outer reserves accrued to $37.9 billion, the highest successful 3 weeks.

The Nigerian currency, the naira, has mislaid astir 71% of its worth against the dollar since Bola Tinubu became president and embarked connected overseas currency reforms.

Reports accidental liquidity absorption costs from the merchantability of high-yielding short-tenured fixed income securities meant to mop up excess naira, power inflation, and the speech rate, accrued to N4.5 trillion successful 2024 from N1.5 trillion successful 2023.

CBN said it is committed to outer assemblage stableness to guarantee Nigeria is amended positioned to conscionable its planetary obligations, stabilise the naira, and boost macroeconomic confidence.

The naira depreciates amid autumn successful lipid prices

The naira’s presumption among planetary currencies is worsened by falling lipid prices, which experts accidental is simply a menace to the country’s 2025 budget.

Oil prices person seen the biggest diminution successful astir 4 years aft Saudi Arabia disclosed plans to nutrient much and grow its marketplace share.

Nigeria’s Brent crude sold for $61.86 per barrel, portion WTI crude slipped to $58.21, the lowest since March 2021.

The autumn contrasts with the market’s show experienced earlier this year, erstwhile prices were astir $75 per barrel.

The displacement has upset marketplace dealers and shifted planetary commercialized dynamics aft traders positioned themselves for imaginable proviso disruptions owed to the Middle East conflicts.

In aboriginal April, Saudi Arabia moved to summation its OPEC+ accumulation successful May.

Several members of the cartel volition reportedly question an summation successful output for the 2nd period successful June arsenic they conscionable connected May 5 to sermon accumulation plans.

Nigeria’s fund is successful trouble

Experts person said that Nigeria’s 2025 fund hangs successful the equilibrium owed to the driblet successful planetary lipid prices and home crude production.

The authorities benchmarked the lipid terms astatine $75 per barrel, with a projected regular output of 2.06 cardinal barrels.

Legit.ng antecedently reported that Nigeria’s crude lipid accumulation fell steadily from 1.495 cardinal barrels per time successful January to 1.465 cardinal successful February, with much drops occurring successful March.

Nigeria's outer reserves diminution amid moves to prevention the naira. Credit: NurPhoto/Contributor
Source: Getty Images

The setbacks airs a menace to Nigeria’s economical stability, arsenic lipid accounts for the country’s export net and much than fractional of the government’s revenue. 

Naira crashes against the US dollar

Legit.ng earlier reported that the naira depreciated somewhat against the United States dollar successful the authoritative market.

Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM), the naira closed astatine N1,606 per dollar astatine the extremity of trading connected Friday, April 4.

Friday's speech complaint is simply a 0.24% depreciation for the naira erstwhile compared to the erstwhile day's closing complaint of N1,602 recorded successful the authoritative market.

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Source: Legit.ng