CBN Withdraws N13.41 Trillion in January 2026

In January 2026, the Central Bank of Nigeria (CBN) withdrew N13.41 trillion from the financial system, a figure nearly five times higher than the N2.77 trillion withdrawn during the same month in the previous year. This significant withdrawal indicates a strong monetary tightening stance by the CBN, aimed at controlling inflationary pressures.

The Financial Market Dealers Association (FMDA) reported that the decline in money supply and private sector credit reflects the CBN's aggressive policies initiated at the start of the year. The latest figures show a contraction in money supply, following an expansionary cycle in December 2025.

Despite the CBN's decision to reduce the benchmark rate from 27% to 26.5% on February 24, 2026, the monetary tightening is expected to peak in May. The report also highlighted a sharp decline in foreign assets while domestic assets continued to rise, supporting domestic credit expansion.

Currency outside banks decreased to N5.21 trillion, with overall currency circulation remaining stable at N5.73 trillion.