Nigeria’s broad money supply (M3) fell marginally to N123.15 trillion in February 2026, down from N123.36 trillion in January 2026.
This is according to the latest data released by the Central Bank of Nigeria (CBN).
Despite the monthly decline, M3 remains significantly higher than the N110.71 trillion recorded in February 2025, highlighting a continued year-on-year expansion in liquidity across the economy.
Broad money, or M3, captures the total liquidity available for spending, investment, and lending, including currency in circulation, demand, savings, and time deposits, as well as foreign currency holdings.
What the data is saying
A closer look at the components of money supply shows minor monthly adjustments alongside robust annual growth.
- Narrow money (M2), which excludes foreign currency deposits, also fell slightly to N123.14 trillion from N123.35 trillion in January 2026, indicating a modest tightening in liquid funds available for short-term economic activity.
- Net foreign assets (NFA) declined to N28.41 trillion from N29.61 trillion, reflecting reduced external liquidity.
- Net domestic assets (NDA) rose to N94.74 trillion from N93.76 trillion, driven by increased domestic credit and financial sector activity.
The combination of falling foreign assets and rising domestic assets points to a rebalancing of liquidity sources within the economy, with domestic credit supporting broader monetary growth.
Context
The marginal decline in Nigeria’s broad money supply in February 2026 comes at a time of heightened macroeconomic adjustment, as monetary authorities intensify efforts to stabilise prices, manage liquidity, and defend the naira amid persistent external pressures.
Over the past year, the CBN has maintained a tight monetary stance to control inflation and curb excess money supply.
- The Central Bank of Nigeria’s Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points to 27% in September 2025 to stimulate economic activity.
- The MPR was maintained at 27% in November 2025, reflecting a cautious approach aimed at balancing growth support with price stability.
- The slight dip in M3 could signal short-term liquidity constraints, even as the broader financial system continues to expand year-on-year.
Monitoring the evolution of M3 and its components, particularly M2 and net foreign assets, will remain critical for policymakers seeking to sustain growth while managing inflationary pressures.
The marginal decline in Nigeria’s money supply does not indicate a contraction of the economy but highlights the delicate balance between liquidity, inflation, and growth.
What you should know
At its 304th meeting of the Monetary Policy Committee (MPC) in February, CBN reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent from 27 per cent.
The apex bank also retained the Cash Reserve Ratio at 45.0 per cent for commercial banks and 16.0 per cent for merchant banks.
- The Liquidity Ratio was maintained at 30.0 per cent.
- The Standing Facilities Corridor was fixed at +50/-450 basis points around the MPR.
The National Bureau of Statistics (NBS) also reported that the headline inflation declined to 15.06% in February 2026, down from 15.10% recorded in January 2026.
