Money supply rises by N16trn to N133.25trn despite tight monetary policy
Nigeria’s broad money supply expanded by N16 trillion year-on-year to N133.25 trillion in June 2026, underscoring sustained liquidity growth despite the Central Bank of Nigeria’s decision to maintain the Monetary Policy Rate (MPR) at 26.50 per cent to curb inflation and preserve macroeconomic stability.
Latest money and credit statistics released by the Central Bank of Nigeria (CBN) showed that broad money (M3) increased by N4.04 trillion, or 3.11 per cent, from N129.21 trillion recorded in May, while rising 13.59 per cent from N117.25 trillion in June 2025.
Broad money (M3), which comprises currency outside banks, demand deposits, savings and time deposits as well as foreign currency deposits, expanded on the back of stronger growth in quasi-money and domestic assets.
The CBN data showed that M2, which includes narrow money and quasi-money, also increased to N133.24 trillion in June from N129.20 trillion in May.
Quasi-money rose to N88.54 trillion from N84.58 trillion, accounting for the largest contribution to the monthly increase in liquidity, while demand deposits climbed to N39.78 trillion from N39.43 trillion.
In contrast, currency outside banks declined to N4.92 trillion from N5.19 trillion, suggesting increased banking system intermediation during the period.
The report further showed that net domestic assets rose by 4.37 per cent to N106.73 trillion in June from N102.26 trillion in May, providing the primary driver of money supply growth.
Meanwhile, net foreign assets eased marginally by 1.56 per cent to N26.53 trillion, compared with N26.95 trillion in the preceding month.
The continued expansion in liquidity comes despite the apex bank’s tight monetary stance, with policymakers retaining the benchmark interest rate at 26.50 per cent to sustain the moderation in inflation while supporting macroeconomic stability.
The latest figures suggest that liquidity conditions remained robust, driven largely by domestic credit expansion and growth in interest-bearing deposits, even as the CBN maintained restrictive monetary conditions.
Analysts said the sustained increase in money supply highlights the delicate balance the monetary authority faces between containing inflationary pressures and ensuring adequate liquidity to support economic activity.
The latest data follows the CBN’s decision at its July Monetary Policy Committee meeting to retain all key monetary policy parameters, reaffirming its commitment to maintaining price stability while monitoring domestic and global economic developments.
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