Nigeria’s broad money supply (M3) surged to N124.4 trillion in December 2025, up from N122.95 trillion recorded in November.
This is according to the latest data released by the Central Bank of Nigeria (CBN).
This reflects a steady increase compared to N113.36 trillion reported in December 2024, signaling continued liquidity growth in the Nigerian economy.
The increase in money supply is driven by shifts in both the net foreign assets (NFA) and net domestic assets (NDA) of the banking system.
While net foreign assets declined from N37.38 trillion in November to N31.5 trillion in December, net domestic assets rose sharply from N85.57 trillion to N92.9 trillion over the same period.
Furthermore, the narrower money supply measure (M2), which includes currency in circulation and demand deposits, also rose from N122.94 trillion in November to N124.4 trillion in December.
The growth in Nigeria’s money supply reflects a complex interplay between foreign and domestic financial factors.
These figures suggest the banking system is channeling more funds into the domestic economy even as foreign currency holdings decline.
The recent surge in money supply ties closely to monetary policy shifts initiated by the Central Bank of Nigeria earlier in 2025.
In September, the Monetary Policy Committee (MPC) cut the Monetary Policy Rate (MPR) by 50 basis points, reducing it to 27 per cent. This move was driven by easing inflation and improved stability in the foreign exchange market, which encouraged more accommodative financial conditions.
However, in November, the MPC decided to hold the MPR steady at 27 per cent.
This cautious stance reflects the committee’s intent to balance support for economic activity against the risks of reigniting inflation.
The increase in domestic assets is partly attributed to government borrowing and credit growth, which have fueled liquidity expansion within the banking sector.
The expanding money supply in Nigeria reveals how the Central Bank is navigating a challenging monetary environment.
This data underscores the delicate position of Nigeria’s monetary authorities as they strive to sustain economic momentum without compromising price stability.
Recent trends in Nigeria’s monetary policy and money supply are critical for investors, businesses, and policymakers.
Recent trends in Nigeria’s monetary policy and money supply are critical for investors, businesses, and policymakers.
Understanding these dynamics is key to anticipating Nigeria’s economic outlook and financial market movements in the near term.