The Central Bank of Nigeria withdrew about N13.41 trillion from Nigeria’s financial system in January 2026, a sharp increase compared with the N2.77 trillion mopped up during the same period in 2025.
Fresh monetary data released by the Financial Markets Dealers Association indicate that the move coincided with a broad slowdown in money supply and lending across the banking sector at the start of the year.
The statistics reveal that Nigeria’s overall money supply fell to N123.36 trillion in January from N124.41 trillion noted in December 2025. At the same time, the narrow money supply also declined somewhat to N123.35 trillion.
Private sector credit dropped to N75.24 trillion in January from N75.83 trillion in the previous month, following the same pattern; credit to the government eased slightly to N34.19 trillion.
Reflecting the effects of the central bank’s liquidity withdrawal from the financial system, bank reserves fell from N32.04 trillion to N30.26 trillion.
The News Chronicle understands that the extensive liquidity mop-up results from the central bank’s continuous efforts to curb inflationary pressures and stabilise financial circumstances following a surge in cash circulation late in 2025.
Further examination of the data reveals that net foreign assets fell to N29.61 trillion in January from N31.51 trillion in December. Simultaneously, net domestic assets grew to N93.76 trillion, implying that domestic credit activity continued to expand even as foreign assets dwindled.
Market analysts note that the tightening approach seen in January followed a slight reduction in the benchmark interest rate in February, a step intended to gradually improve liquidity and credit conditions in the months that followed.
