Nigeria’s broad money supply rose to N119.52 trillion in August 2025, up from N117.4 trillion in June, according to the Central Bank of Nigeria (CBN).
The figure also reflects a year-on-year increase from N107 trillion in August 2024, underscoring continued liquidity growth despite inflationary pressures and exchange rate concerns.
The apex bank did not publish data for July 2025, making the August report the latest official update.
Data showed net foreign assets climbed slightly to N40.9 trillion in August, compared with N40.7 trillion in June. This indicates a modest improvement in Nigeria’s external reserves, despite persistent headwinds in both global and domestic markets.
Net domestic assets also rose to N78.58 trillion in August from N76.8 trillion in June. The rise was driven by increased credit to both the private sector and government, contributing to the expansion of overall monetary aggregates.
The combined rise in foreign and domestic assets underpinned the sharp growth in broad money supply (M2), which closed at N119.5 trillion in August. The trend highlights sustained liquidity in the financial system, though it raises concerns over the outlook for inflation and currency stability.
However, narrow money (M1) contracted during the period, falling to N39.3 trillion in August from N39.9 trillion in June. The decline points to reduced cash holdings and demand deposits, possibly reflecting tighter monetary conditions or stronger preference for savings and time deposits.
Broad money (M2), which combines M1 and quasi-money, showed growth despite the contraction in transactional balances. This suggests that households and businesses are shifting funds from cash into longer-term deposits.
In September, the CBN cut the Monetary Policy Rate (MPR) by 50 basis points to 27 percent. The Monetary Policy Committee also narrowed the asymmetric corridor to +250 and -250 basis points, while retaining the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks.
The apex bank said it continues to monitor money supply growth closely to manage inflationary risks and safeguard exchange rate stability.
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