The Central Bank of Nigeria (CBN) has withdrawn about N59.3 trillion from the financial system since January 2026 as part of efforts to tighten liquidity ahead of the 2027 general elections and reduce the risk of election-related cash surges that could encourage vote buying.
The development was disclosed in CardinalStone Research’s 2026 Mid-Year Economic Outlook released by CardinalStone Securities Limited (CSSL), a subsidiary of CardinalStone Partners Limited.
According to the report, the apex bank’s aggressive liquidity management strategy is aimed at preventing excess cash from flooding the economy during the election period while also supporting monetary stability.
The report said the CBN’s actions reflect concerns previously raised by members of the Monetary Policy Committee (MPC) over the possibility of election-driven liquidity injections and increased demand for foreign exchange as political activities gather momentum.
“While data suggests that election cycles do not necessarily translate to FX pressures in isolation, we like
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