Naira to ₦1,000/$ Barred by CBN FX Intervention: Shettima

The Central Bank of Nigeria’s (CBN) intervention in the foreign exchange market this week prevented a rapid appreciation of the naira, according to Vice President Kashim Shettima. He stated that without the central bank’s actions, the local currency could have strengthened to ₦1,000 per U.S. dollar within weeks, not months.

Speaking on Tuesday at the Progressive Governors’ Forum (PGF) Renewed Hope Ambassadors Strategic Summit in Abuja, Shettima explained that the CBN intervened on Monday to ensure market stability. He framed the potential sharp appreciation as a sign of underlying economic strength but noted that such a move could have disrupted the market.

“If not for the interventions by the Central Bank of Nigeria yesterday, the 1,000 Naira to a dollar we are going to attain in weeks, not in months,” Shettima said. “But for the purpose of market stability, the CBN generously intervened yesterday.” He linked this scenario to the practice of hoarding foreign currency, issuing a warning to those who stockpile dollars. “So, for some of my friends, especially one of our party leaders who take delight in stockpiling dollars, it is a wake-up call.”

The Vice President highlighted broader positive economic indicators to support his view of a strengthening economy. He noted that five of the seven major investment decisions made across Africa last year were secured for Nigeria, citing this as evidence of the economy’s viability and promise. He outlined the administration’s strategy, stating that as the nation advances into 2026, the focus will shift from stabilization to acceleration.

Shettima’s projection aligns with a recent forecast by billionaire Aliko Dangote, who also predicted the naira would reach ₦1,000 to the dollar this year and expressed support for the federal government’s economic policies.

The comments come amid ongoing efforts by the CBN to manage foreign exchange liquidity and stabilize the naira, which has faced significant pressure in recent years. The central bank has implemented various measures, including interest rate adjustments and clearing backlogs, to restore confidence in the currency and attract foreign investment.

The speech underscores the government’s narrative of an economy on a recovery path, balancing the desire for a stronger naira with the need for orderly market conditions. The CBN’s intervention, as described by the Vice President, reflects a deliberate strategy to guide the currency’s movement rather than allow a potentially volatile free fall to an anticipated target.

The original post, which included a video of the speech, was published by Channels Television.