Nigeria’s financial markets entered 2026 under intense pressure as the Central Bank of Nigeria (CBN) withdrew more than N15 trillion from the banking system in January, reinforcing its tight monetary stance amid persistent inflation and foreign exchange risks.
The development is based on CBN financial market data and insights from market operators monitoring liquidity conditions and fixed income activity.
While headline system liquidity improved slightly compared with December, analysts say the scale of cash sterilisation signals that borrowing costs will remain elevated and investment strategies cautious in the near term.