Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has warned that excess liquidity and the 2027 election cycle could threaten Nigeria’s hard-won economic stability, urging careful management to protect reforms that have strengthened the economy.
Speaking at the National Economic Council (NEC) Conference 2026 at the Presidential Villa, themed: “Delivering Inclusive Growth and Sustainable National Development: The Renewed Hope National Development Plan,” Cardoso addressed the “Fiscal and Monetary Outlook 2026–2030: Priorities and Imperatives” panel.
Recalling the challenges he inherited, Cardoso said: “The cost of loose monetary policy accessibility, the cost of having to soak up all that liquidity was a problem. Next slide and persistent inflation. Inflation has served the 34.6% dysfunctional FX market. You all remember, there’s a huge backlog of over $7 billion and that the parallel market premium exceeded 16% loss of investor confidence.
“Everybody took flights, nobody went to hold Naira, and it was a very desperate situation. Then, of course, there was direct intervention by the Central Bank, which reached an unprecedented level of 10.93 trillion Naira, which honestly was a huge problem.”
