Nigeria: national economy crippled by liquidity shortage

Nigeria has been facing an unprecedented liquidity crisis since the beginning of the year, with money becoming a scarce commodity, crippling the economy and plunging much of the population into uncertainty. Attempts by the Central Bank to inject funds are struggling to reverse the trend, leaving the country adrift.

In 2025, Nigeria is experiencing a liquidity crisis on an unprecedented scale. Despite attempts by the Central Bank of Nigeria (CBN) to inject funds into the banking system, the effects are slow to be felt, leaving a large part of the population in turmoil, particularly those in the informal economy.

In an already fragile economic climate, the first financial indicators of the year reveal the extent of the crisis shaking Nigeria. According to the news website Legit, Nigerian commercial banks borrowed over 8.2 billion naira (over 2 billion CFA francs) from the Central Bank in the first 17 days of the year, in order to alleviate the liquidity shortage paralyzing the economy. But on the ground, the effects of these injections are slow to be felt, and the hard-pressed population is calling on the government to act quickly.

As cash shortages continue to suffocate the Nigerian economy, a whole section of society is reeling. To prevent this asphyxiation from becoming chronic, more than technical adjustments are needed. A profound overhaul of the financial system, real support for the informal economy, and above all, a firm political will must be envisaged to rebuild a more equitable and resilient economy.

source: Africa24