CBN’s Aggressive Liquidity Mop-Up Measures Help Tame Inflationary Pressures
Story : written Uzuh Rita August 28,2025
The Central Bank of Nigeria (CBN) has intensified its liquidity mop-up operations, a move analysts say is beginning to ease inflationary pressures in the economy.
Through a series of open market operations (OMO), increased cash reserve requirements, and tighter control of excess liquidity in the banking sector, the apex bank has curbed the flow of money in circulation. This has contributed to moderating price instability that has plagued the Nigerian economy in recent months.
According to monetary experts, the mop-up measures have not only slowed inflationary momentum but also boosted investor confidence in the central bank’s ability to stabilize the financial system. By reducing the volume of idle cash, the CBN is targeting lower demand-driven inflation while maintaining a delicate balance between growth and stability.
Economists note that while inflation remains high, recent trends suggest that the pace of increase is slowing, partly due to the bank’s aggressive liquidity control measures. They, however, cautioned that sustained policy consistency and improved fiscal discipline are needed to consolidate the gains.
The CBN has reaffirmed its commitment to using all monetary tools available to achieve its mandate of price stability, economic growth, and financial system stability.
