Nigeria’s Money Supply Rises to N129.2 Trillion in May Despite Tight Monetary Policy

June 23, () — Nigeria’s broad money supply (M3) increased to N129.21 trillion in May 2026, reflecting continued growth in liquidity across the economy despite the Central Bank of Nigeria’s tight monetary policy stance.

Latest data released by the Central Bank of Nigeria (CBN) showed that broad money supply rose from N124.99 trillion recorded in April 2026, representing a month-on-month increase of 3.38 percent.

On a year-on-year basis, M3 expanded from N119.20 trillion in May 2025, highlighting sustained growth in money stock over the past 12 months.

Broad money, also known as M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.

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

Quasi-money, which includes savings and time deposits, rose to N84.58 trillion in May from N81.22 trillion in April.

Narrow money also increased to N129.20 trillion from N124.98 trillion during the same period, while CBN bills held by money-holding sectors edged slightly higher to N9.66 billion.

Further analysis of the data showed that both external and domestic asset positions contributed to the expansion in liquidity.

Net foreign assets rose significantly to N26.95 trillion in May from N24.01 trillion in April, indicating stronger external asset accumulation within the banking system.

Similarly, net domestic assets increased to N102.26 trillion from N100.97 trillion, reflecting continued growth in credit and other domestic financial holdings.

The latest figures come despite the CBN’s decision to maintain its benchmark Monetary Policy Rate at 26.50 percent as part of efforts to curb inflation and preserve macroeconomic stability.

While the apex bank has retained a tight policy stance, monetary aggregates have continued to expand, suggesting that liquidity conditions remain relatively accommodative.

The trend is expected to remain a key focus for policymakers as they seek to balance economic growth with inflation control and exchange rate stability.