The Central Bank of Nigeria is preparing to contain potential liquidity pressures linked to increased spending ahead of the 2027 general elections, Governor Olayemi Cardoso has said.
Cardoso said the apex bank had modelled various election-period scenarios and would closely monitor currency in circulation, banking-system liquidity, monetary aggregates and foreign exchange demand before taking appropriate action.
“We will not base things on assumptions,” the governor said, adding that the CBN would respond to developments in the financial system and proactively deploy monetary policy instruments to mop up excess liquidity if necessary.
His comments came after the 307th Monetary Policy Committee meeting, where the CBN cut the Monetary Policy Rate from 26.5% to 23% and recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR. The Cash Reserve Requirement was retained at 45% for deposit money banks and 16% for merchant banks.
The CBN’s preparations come as Nigeria moves towards the 2027 elections, with election-related spending potentially affecting liquidity and demand for foreign exchange. The Independent National Electoral Commission has projected ₦873.78 billion for the conduct of the 2027 elections, alongside ₦171 billion for its 2026 operations.
