Nigeria’s broad money supply surged to N119.52 trillion in August 2025, marking a sharp increase from N117.4 trillion recorded in June 2025.
This is according to the latest data released by the Central Bank of Nigeria (CBN).
The August figures reflect a year-on-year rise from N107 trillion in August 2024, demonstrating the persistent expansion of liquidity in the financial system despite concerns over inflationary pressures and exchange rate volatility.
Notably, the apex bank did not release money supply data for July 2025.
Net foreign assets rise to N40.9 trillion
The data further shows that Nigeria’s net foreign assets (NFA) climbed to N40.9 trillion in August 2025, marking an increase from N40.7 trillion recorded in June 2025.
The figures reveal a modest improvement in the country’s external reserves position, despite persistent challenges in the global and domestic financial markets.
In addition, the CBN report showed that net domestic assets (NDA) also rose during the same period, reaching N78.58 trillion in August, up from N76.8 trillion in June 2025. The increase in domestic assets reflects growth in credit to both the private sector and the government, alongside the expansion of monetary aggregates.
The combined growth in NFA and NDA shows a significant expansion in the country’s overall money supply, which has been under close monitoring by the CBN due to its implications for inflation and exchange rate stability.
M2 hits N119.5 trillion in August 2025
The CBN data further show that Nigeria’s broad money supply (M2) rose to N119.5 trillion in August 2025, up from N117.4 trillion in June.
The increase in M2 reflects a steady expansion of liquidity in the financial system, driven largely by growth in net domestic assets and credit to the private sector.
However, the data also shows a decline in narrow money (M1), which fell to N39.3 trillion in August, down from N39.9 trillion in June 2025. Narrow money, which includes currency in circulation and demand deposits, is a key indicator of transactional balances in the economy.
The contraction suggests reduced liquidity in immediate cash holdings, possibly linked to tighter monetary policies or increased preference for savings and quasi-money instruments.
The broad money supply (M2) combines narrow money (M1) and quasi-money (such as savings and time deposits), offering a fuller picture of the financial system’s liquidity. The growth in M2 despite the fall in M1 indicates that Nigerians are holding more of their funds in savings and longer-term deposit accounts rather than in cash and current accounts.
What you should know
In September, CBN reduced the MPR by 50 basis points, lowering it from 27.5 percent to 27 percent.
Alongside the MPR cut, the MPC narrowed the asymmetric corridor around the benchmark rate to +250 and -250 basis points, from the previous +500/-100 basis points.
The Committee retained CRR for commercial banks at 45 percent, while that of merchant banks was set at 16 percent.
