Nigeria has been facing an unprecedented liquidity crisis since the start of the year, with money becoming a scarce commodity, paralysing the economy and plunging large sections of the population into uncertainty. Attempts by the Central Bank to inject funds are struggling to reverse the trend, leaving the country floundering.
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.
We, as sellers, as traders, everything we sell now is going up on the market. Things are getting harder for the population.
Meg AKONKWO, Trader
In an already fragile economic climate, the first financial indicators of the year reveal the extent of the crisis shaking Nigeria. According to the Legit news website, Nigerian commercial banks borrowed more than 8.2 billion naira, or more than FCFA 2 billion, from the Central Bank in the first 17 days of the year, in order to alleviate the liquidity shortage that is paralysing 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.
The things we used to buy for 1,000 naira are now selling for 1,500 naira. Like this apple, they sell 2 to 1,500. Things are so expensive. I just pray that the government will do something, because we are not happy at all in the country.
Life NWANKWO, Citizen
As the cash crunch continues 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 thorough overhaul of the financial system, real support for the informal economy, and above all, a firm political will must be envisaged to rebuild a fairer and more resilient economy.
