The global oil market has experienced a significant downturn, with crude oil prices plummeting over 12%, reaching approximately $65.50 per barrel.
Entrepreneurng reports that this decline follows the imposition of extensive trade tariffs by U.S. President Donald Trump against several countries, contributing to market volatility.
Prior to the tariff imposition, oil prices had been above $70 per barrel. As of Thursday, the price of the OPEC basket of twelve crudes stood at $75.35 per barrel, a decrease from $77.44 the day before, based on calculations from the OPEC Secretariat.
For Nigeria, which relies heavily on crude oil exports for 90% of its foreign exchange, the price drop has raised concerns over economic stability.
In response, the Central Bank of Nigeria (CBN) took immediate action, announcing in a circular on Sunday that it had intervened in the market by providing $197.71 million through sales to authorized dealers.
This move, conducted on Friday, aims to ensure liquidity and maintain an orderly market, aligning with the CBN’s broader objective of fostering a stable and transparent foreign exchange environment.
The CBN stated that the fluctuations observed in the foreign exchange market between April 3 and 4, 2025, were part of broader global economic trends affecting many emerging markets.
“These changes stem from the recent announcement by the U.S. government imposing new tariffs on imports from multiple economies, which has initiated a period of market adjustment globally,” the CBN explained.
The statement further noted that oil prices had weakened significantly, with crude dropping to around $65.50 per barrel, creating new challenges for oil-dependent nations like Nigeria.
