CBN Tightens Cash Supply to Curb Vote Buying Ahead of 2027

The Central Bank of Nigeria (CBN) is implementing measures to tighten cash supply in preparation for the 2027 general elections, aiming to reduce the risk of vote buying. As part of this effort, the CBN has withdrawn ₦59.3 trillion from the financial system since January 2026.

According to CardinalStone Research's 2026 mid-year economic outlook, the CBN's aggressive liquidity management strategy is designed to prevent excess cash from flooding the economy during the election period and to support monetary stability. The report indicates that the CBN's actions reflect concerns over previous elections driven by liquidity injections that increased demand for foreign exchange.

As of the beginning of the year, the net issuance stood at ₦19.8 trillion. The CBN's tightening policies have already begun to affect the country's money supply, with growth slowing to 8.4% year-on-year by May 2026.

The CBN is expected to maintain its tight monetary policy throughout the rest of 2026, with projections indicating a gradual easing in 2027.