Nigeria’s money supply surges to N110.98 trillion as MPC members meet to decide rates 

This expansion highlights the growing liquidity in the economy, fueled by both net foreign assets and net domestic assets.

However, the Central Bank of Nigeria (CBN) did not provide figures for December 2024, leaving a crucial gap in understanding monetary movements during the peak holiday spending season.

The surge in money supply comes at a critical time as the Monetary Policy Committee (MPC) meets on Wednesday, February 19, and Thursday, February 20, to decide on interest rates amid persistent inflationary concerns.

According to the latest credit and monetary statistics released by the CBN, net foreign assets stood at N35.39 trillion in January 2025, up from N29.73 trillion in January 2024, reflecting a 19% YoY increase.

With a surge in money supply and rising liquidity levels, the CBN faces a major challenge in controlling inflation and stabilizing the naira.

At the last MPC meeting, the CBN raised the interest rate, increasing it by 25 basis points from 27.25% to 27.50%, in a bid to address the rising inflation in the country.

Dr. Muda Yusuf, Chief Executive Officer of CPPE, emphasized that pausing interest rate hikes would provide an opportunity for fiscal policy measures to address inflation.

The CBN’s policy direction will determine whether a tightening stance is adopted to rein in excess liquidity or if a cautious approach is taken to balance economic growth and price stability. Whatever the decision, the MPC’s resolution this week will set the tone for Nigeria’s monetary policy in 2025, shaping inflation trends, credit availability, and overall economic confidence.