CBN to Inject N1.4 Trillion to Bolster Liquidity - CBN Governor, Cardoso

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, announced a move to enhance the country's financial sector by injecting N1.4 trillion into the system.

This announcement was made during the 297th Monetary Policy Committee meeting. Cardoso emphasized that this liquidity boost aims to address the ongoing issue of cash insufficiency in banks' Automated Teller Machines (ATMs). He assured that the CBN is actively working on solutions and warned that banks sabotaging the system would face sanctions.

"Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system," Cardoso stated. He further added, "... And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realizes that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be."

In addition to the liquidity injection, the CBN has raised the country's interest rate to 27.25 percent, up from 26.75 percent in July 2024.

This marks the fifth consecutive hike in interest rates, reflecting the bank's efforts to manage inflation and stabilize the economy.

The announcement comes amid a challenging economic backdrop, with the naira experiencing a depreciation against the dollar and Nigeria's external reserves reaching a 22-month high of $37.39 billion.

These developments highlight the complexities of Nigeria's current financial landscape, where measures to boost liquidity and control inflation are critically intertwined.

Key topics addressed include the liquidity boost, ATM cash problems, interest rate hike, naira valuation, and reserve levels, offering a comprehensive view of Nigeria's current financial situation.