Nigerians are exhibiting stronger savings behavior amid rising macroeconomic uncertainty, as Quasi-Money rose by 3.65% month-on-month to N75.65 trillion in March 2025, up from N72.98 trillion recorded in February 2025.
Quasi-money, also called near money, refers to financial assets that are not actual cash but can quickly and easily be converted into cash without losing much value.
They are highly liquid and often earn interest, but you can’t use them directly for payments like you would with physical cash or money in a chequing/current account.
According to the latest Money and Credit Statistics released by the Central Bank of Nigeria (CBN), Quasi-Money—which comprises savings deposits, fixed-term deposits, and other highly liquid financial assets excluding currency—rose by 26.42% year-on-year to N75.65 trillion in March 2025, up from N59.84 trillion in the same month of 2024.
This underscores growing confidence in the financial system and a shift towards safer, interest-bearing assets during Nigeria’s ongoing economic slowdown.
Money supply and market indicators
Broad Money Supply (M2) increased to N114.20 trillion in March 2025, representing a 3.17% monthly uptick and a 23.69% jump from the N92.33 trillion recorded in the same period last year.
Quasi-Money remains a dominant component of M2, reinforcing its strategic role in deepening financial intermediation in the country.
Other key highlights include:
- Demand Deposits rose to N33.96 trillion, up 17.65% from N26.86 trillion in March 2024.
- Currency Outside Banks surged by 26.72% year-on-year to N4.59 trillion, compared to N3.63 trillion in the corresponding period.
What’s Driving the Growth?
Nairametrics analysts highlight several underlying factors:
Monetary tightening: The Central Bank of Nigeria (CBN) has maintained a tight monetary stance for over a year, keeping interest rates elevated in a bid to contain inflation. This has made savings and fixed-income instruments more attractive.
Robust Treasury Bill Market: The Debt Management Office (DMO) has ramped up local borrowing, contributing to the surge in quasi-money. In 2025, treasury bills have become a hot spot for investors seeking high returns:
- In January, the CBN recorded an oversubscription of N1.47 trillion for its 364-day bills, clearing at a stop rate of 22.6%.
- By February 19, total subscriptions across three tenors hit N2.41 trillion, slightly below the N3.22 trillion recorded on February 5—but still a sign of strong demand.
Search for stability: In uncertain times, Nigerians are moving funds into safer, interest-yielding assets, especially those backed by the government or held with reputable banks.
Financial inclusion gains: The ongoing push by regulators and banks to expand access to digital and formal financial services continues to draw more deposits into the system.
Credit Trends and Fiscal Positioning
The rise in quasi-money also fits into Nigeria’s broader monetary landscape:
- Net Domestic Credit rose 12.47% year-on-year to N103.37 trillion, but declined 1.20% month-on-month—possibly reflecting more cautious bank lending.
- Credit to Government surged by 31.99% year-on-year to N25.86 trillion, driven by fiscal borrowing, before falling 4.63% in March 2025—a sign of temporary moderation in government financing.
- Private Sector Credit saw slower growth, up just 7.10% year-on-year to N76.27 trillion, indicating a mix of conservative lending and modest real sector appetite for new debt.
