By Cyprian Ajah

The release of the 2027 general election timetable by the Independent National Electoral Commission (INEC ) has sparked excitement among politicians, but the Central Bank of Nigeria (CBN) is sounding a warning bell. CBN Governor Yemi Cardoso notes that election-related spending could undermine economic reforms, risking gains in foreign reserves ($47.53 billion) and inflation reduction (15.15% as of December).

He was of the opinion that excess liquidity from election spending could worsen inflation drivers like food and energy costs.

The apex bank governor maintained that fiscal discipline is crucial to protect economic gains; state governors and authorities must exercise prudence.
The CBN boss said the reforms have restored confidence, growing foreign reserves to $49 billion.

“The problem is, politicians often spend beyond legal limits, using cash and informal networks. This can:
fuel inflation, weaken monetary policy
and depreciate the naira which
threaten economic stability” he added.

Cardoso’s warning is clear because when fiscal discipline and liquidity control are maintained, they safeguard the economy’s $1 trillion target by 2030.