Meanwhile the CBN sold $300 million at an exchange rate of 150.27 to the dollar at its two-weekly foreign exchange auction on Monday, short of the $422 million demanded, Bankers said on Tuesday.

The regulator had sold dollars at N150.06 at its previous auction on Thursday, the day before it injected 400 billion naira into five banks and removed their top management in a bid to prevent a systemic banking crisis.

The unprecedented move on the banks caused the naira to depreciate on the inter bank market, where it closed at N 158.60, amid fears of capital flight. But dealers said the naira strengthened a little after the result of the central bank auction was released on Tuesday, trading at N158.40 to the dollar. Demand for the dollar was expected to remain strong as banks seek to cover open positions, indicating that the naira could weaken further before close of market, traders said.