Nigeria’s Broad Money Supply Rises to N133.25tn Amid Tight Monetary Policy

Nigeria’s broad money supply (M3) increased to N133.25 trillion in June 2026, despite the Central Bank of Nigeria (CBN) maintaining a tight monetary policy stance with the Monetary Policy Rate (MPR) held at 26.5 per cent.

The latest data released by the apex bank shows that broad money supply rose from N129.21 trillion in May to N133.25 trillion in June, representing a N4.04 trillion month-on-month increase. The development indicates continued expansion in liquidity across the economy, even as monetary authorities maintain elevated interest rates to moderate inflationary pressures.

The increase suggests that households and businesses had greater access to financial resources for spending and investment during the review period.

Growth Driven by Domestic Liquidity

According to the CBN’s monetary statistics, the expansion in money supply was largely supported by stronger domestic assets and growth in quasi-money holdings.

Broad money (M3) measures the total amount of money circulating within an economy, including cash in circulation, demand deposits, savings accounts, fixed deposits and other highly liquid financial assets.

Data from the apex bank showed that quasi-money, which comprises savings and time deposits, rose to N88.54 trillionin June from N84.58 trillion recorded in May.

Similarly, demand deposits increased marginally to N39.78 trillion, compared with N39.43 trillion in the previous month.

Cash Outside Banks Declines

The report also indicated that the volume of currency held outside the banking system declined during the period.

Currency outside banks fell to N4.92 trillion in June from N5.19 trillion in May, suggesting that a larger proportion of cash remained within the formal financial system, supporting liquidity in the banking sector.

Net Domestic Assets Expand

Further analysis of the CBN data revealed that net domestic assets increased by 4.37 per cent, rising from N102.26 trillion in May to N106.73 trillion in June.

In contrast, net foreign assets recorded a slight decline of 1.56 per cent, dropping from N26.95 trillion to N26.53 trillion over the same period.

Overall, Nigeria’s broad money supply expanded by 3.11 per cent month-on-month, reflecting continued liquidity growth despite the country’s restrictive monetary policy environment.

Inflation Risks Remain in Focus

The latest increase in money supply comes as the Central Bank continues to balance liquidity management with its broader objective of reducing inflation and preserving macroeconomic stability.

While higher liquidity can support economic activity by improving access to credit and encouraging investment, economists note that sustained growth in money supply could complicate efforts to contain inflation if not matched by corresponding increases in productivity and output.

The figures were released shortly after the Monetary Policy Committee (MPC) concluded its latest meeting, where members voted to retain the Monetary Policy Rate at 26.5 per cent while leaving all other key monetary policy parameters unchanged.

The Committee maintained that preserving its current policy stance would support the ongoing disinflation process, strengthen macroeconomic stability and sustain confidence in Nigeria’s financial system as the economy continues to navigate domestic and external risks.