Nigeria’s Money Supply Hits N133.25tn as CBN Keeps Rates at 26.5%

• Nigeria’s broad money supply increased by N4.04 trillion to N133.25 trillion in June, reflecting sustained liquidity growth despite the Central Bank of Nigeria’s decision to retain its benchmark interest rate

• The expansion was driven mainly by stronger quasi-money and growth in net domestic assets.

• The latest figures come as the apex bank maintains a tight monetary policy stance to contain inflation and preserve macroeconomic stability amid evolving economic conditions.

July 23 , () — Nigeria’s broad money supply rose to N133.25 trillion in June, underscoring continued growth in liquidity despite the Central Bank of Nigeria’s decision to maintain its benchmark interest rate at 26.5 percent.

The latest money and credit statistics released by the apex bank showed that broad money (M3) increased from N129.21 trillion in May, representing a month-on-month increase of N4.04 trillion or 3.11 percent.

On a year-on-year basis, money supply expanded by 13.59 percent from N117.25 trillion recorded in June 2025, reflecting sustained growth in liquidity across the financial system.

Broad money comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.

Quasi-money drives liquidity growth

The increase in money supply was largely driven by growth in quasi-money and net domestic assets during the review period.

According to the CBN data, quasi-money, which includes savings and time deposits, rose to N88.54 trillion in June from N84.58 trillion in May, while demand deposits increased marginally to N39.78 trillion from N39.43 trillion.

Currency held outside the banking system, however, declined to N4.92 trillion from N5.19 trillion recorded in the previous month, suggesting more cash remained within the formal financial system.

The report also showed that broad money and M2, which measures liquid money in the economy, moved almost in tandem, with M2 rising to N133.24 trillion from N129.20 trillion in May.

Domestic assets offset foreign asset decline

Further analysis of the data showed that growth in domestic assets more than compensated for a slight decline in the country’s net foreign assets.

Net domestic assets rose by 4.37 percent to N106.73 trillion in June from N102.26 trillion in May, highlighting stronger domestic liquidity conditions.

By contrast, net foreign assets declined by 1.56 percent to N26.53 trillion from N26.95 trillion over the same period.

The figures suggest that domestic factors played a more significant role in driving liquidity growth during the month than external asset accumulation.

The latest monetary aggregates come as the CBN continues to pursue a tight monetary policy aimed at containing inflationary pressures while supporting macroeconomic stability.

At its 305th Monetary Policy Committee meeting held in May, the apex bank retained the Monetary Policy Rate at 26.5 percent and left other key policy parameters unchanged, signalling its determination to sustain the disinflation process despite improving macroeconomic indicators.

Nigeria’s Money Supply Hits N133.25tn as CBN Keeps Rates at 26.5%