Private sector credit dropped sharply by over ₦14 trillion in just two months, falling to ₦80.59 trillion in April 2026 from a peak of ₦94.61 trillion in February 2026, despite the Central Bank of Nigeria’s (CBN) decision to ease monetary policy.
CBN Keeps Rates Unchanged Despite OPS Warnings on Manufacturing Slowdown
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Wednesday retained the benchmark interest rate at 26.5 per cent, citing rising external risks, renewed inflationary pressure, and the need to sustain...
Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Wednesday said recent inflationary pressures in the country are temporary despite headline inflation rising for two consecutive months.
The Monetary Policy Committee of the Central Bank of Nigeria on Wednesday retained the benchmark Monetary Policy Rate at 26.5 per cent at the end of its 305th meeting.
Inflation Forecast to Hit 15.95% in Sceond Straight Monthly Rise
Nigeria’s cooling inflation era has hit a significant geopolitical roadblock. After nearly a year of steady decline, headline inflation is projected to climb for the second consecutive month, reaching 15.95 per cent in April 2026.
According...
Cash Outside Banks Falls ₦198bn in January
Cash held outside Nigeria’s banking system fell by ₦197.68bn in January 2026, dropping to ₦5.21tn, according to the Central Bank of Nigeria’s Money and Credit Statistics.
The decline came as total currency in circulation slipped marginally to ₦5.73tn, though the share of cash outside banks remained high at 90.91%, slightly lower than 94.33% in December 2025.
Year-on-year, cash outside banks was still higher, rising from ₦4.74tn in January 2025 to ₦5.21tn in January 2026, while overall currency in circulation expanded by ₦495.68bn.
Broad money supply (M3) fell by ₦1.05tn to ₦123.36tn in January, driven largely by a decline in net foreign assets, which dropped to ₦29.61tn from ₦31.51tn in December.
The naira strengthened during the month, closing at ₦1,391/$ compared with ₦1,431/$ at the start of January, contributing to the lower naira value of foreign assets.
Meanwhile, net domestic assets rose to ₦93.76tn, up ₦850.76bn month-on-month, reflecting stronger domestic credit and liquidity conditions. Narrow money also increased to ₦42.33tn, showing a year-on-year rise of ₦5.57tn.
Against this backdrop, the Monetary Policy Committee (MPC) cut the benchmark interest rate by 50 basis points to 26.5%, citing easing inflation and improved FX stability. Governor Olayemi Cardoso said food inflation fell to 8.89%, the lowest in 13 years.
Cardoso reaffirmed the MPC’s commitment to evidence-based policy, noting that “the ongoing disinflation trajectory would continue, largely supported by sustained exchange rate stability and enhanced food supply.”
