Nigeria’s broad money supply (M3) increased to ₦133.25 trillion in June 2026, up from ₦129.21 trillion in May, despite the Central Bank of Nigeria (CBN) maintaining its benchmark Monetary Policy Rate (MPR) at 26.5% in a continued effort to curb inflation and preserve macroeconomic stability.
The increase was disclosed in the CBN’s latest money and credit statistics released on Wednesday.
Broad money (M3) comprises currency in circulation outside banks, demand deposits, savings deposits, time deposits, and foreign currency deposits, making it one of the broadest measures of liquidity within the economy.
What the data is saying
The latest CBN figures indicate that liquidity in the Nigerian economy continued to expand during June despite the apex bank’s restrictive monetary stance.
Key highlights include:
- Broad money supply (M3) rose to ₦133.25 trillion in June from ₦129.21 trillion in May.
- This represents a month-on-month increase of ₦4.04 trillion, equivalent to approximately 3.1%.
- Compared with ₦117.25 trillion recorded in June 2025, money supply increased by ₦16 trillion, representing a year-on-year growth of about 13.6%.
- The expansion was driven primarily by increases in net domestic assets and quasi-money, which includes savings deposits, fixed deposits and other interest-bearing deposits.
The continued growth suggests that liquidity conditions remained relatively accommodative despite elevated interest rates.
More insights
The increase in money supply comes at a time when the CBN continues to pursue a tight monetary policy aimed at slowing inflation and stabilising the naira.
Ordinarily, higher interest rates are expected to moderate money supply growth by discouraging borrowing and reducing excess liquidity. However, the latest data suggest that other liquidity drivers—including banking system asset growth, deposit expansion and domestic credit creation—continued to support monetary expansion.
A growing money supply can have both positive and negative implications for the economy. On one hand, higher liquidity supports lending, business activity and economic growth by providing households and firms with greater access to financial resources.
On the other hand, rapid monetary expansion, if not matched by corresponding growth in economic output, could contribute to inflationary pressures by increasing the amount of money chasing a limited supply of goods and services.
The figures also highlight the delicate balancing act facing the CBN as it seeks to maintain price stability while ensuring sufficient liquidity to support economic activity and financial sector growth.
What you should know
The latest monetary data provides further insight into liquidity conditions within Nigeria’s economy.
Key highlights include:
- Broad money supply (M3) increased to ₦133.25 trillion in June 2026.
- Money supply expanded by ₦4.04 trillion from ₦129.21 trillion recorded in May.
- On a year-on-year basis, M3 increased by approximately ₦16 trillion from ₦117.25 trillion in June 2025.
- The growth was driven largely by higher net domestic assets and quasi-money.
- The increase occurred despite the CBN maintaining the Monetary Policy Rate at 26.5%, underscoring the persistence of liquidity growth within the financial system.
The continued expansion in Nigeria’s money supply suggests that liquidity remains robust despite the CBN’s restrictive monetary stance. Going forward, policymakers will closely monitor whether this liquidity growth translates into stronger economic activity or fuels renewed inflationary pressures, particularly as the apex bank balances its objectives of sustaining exchange rate stability, moderating inflation, and supporting long-term economic growth.
