CardinalStone has lowered its 2026 GDP growth forecast for Nigeria to 4.2%, signaling a more cautious outlook for the West African economy.
The investment bank also pushed back expectations for monetary easing, projecting that the Central Bank of Nigeria (CBN) will not cut interest rates until after the 2027 general elections.
The downgrade reflects ongoing structural headwinds, including elevated inflation and fiscal constraints.
With the CBN widely expected to maintain its current tight monetary stance to anchor inflation expectations during the critical election period, liquidity conditions are likely to remain constrained for the foreseeable future.
This policy continuity limits near-term catalysts for bond market rallies or currency stabilization.
The revised forecast aligns with broader concerns about Nigeria’s economic trajectory.