Nigeria’s money supply hits N138.78 trillion in July despite tight CBN policy

Nigeria’s broad money supply (M3) increased to N138.78 trillion in July 2026, representing a 16% year-on-year rise from N119.89 trillion recorded in July 2025.

This is according to the latest monetary statistics released by the Central Bank of Nigeria.

On a month-on-month basis, M3 increased by N5.52 trillion, or 4.14%, from N133.25 trillion in June 2026, extending the steady expansion recorded through the second quarter of the year.

Broad money, which captures the money available across the economy, includes currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.

What the data is saying

The latest data show that broad money supply has maintained an upward trajectory in 2026, rising from N123.95 trillion in January to N138.78 trillion in July.

M3 stood at N123.12 trillion in February, N124.99 trillion in April, N129.21 trillion in May and N133.25 trillion in June before reaching the July record.

The increase indicates continued growth in liquidity within the financial system, although changes in the composition of money supply are also important in assessing its potential impact on inflation, credit and economic activity.

The expansion in M3 was accompanied by a significant increase in net foreign assets.

• Net foreign assets rose to N37.71 trillion in July from N26.53 trillion in June, representing an increase of N11.18 trillion, or about 42.15% month-on-month.
• The rise suggests that the external position of the banking system made a stronger contribution to overall monetary expansion during the month.

However, this was partly offset by a decline in net domestic credit, which fell to N101.07 trillion from N106.73 trillion in June.

• Net domestic credit therefore declined by about N5.66 trillion, or 5.30%, during the month.
• Money supply measured by M2 also expanded during the period, rising to N138.77 trillion in July from N133.24 trillion in June.

The movement in M2 broadly mirrors the increase in M3 during the month, reflecting higher monetary aggregates across the banking system.

Get up to speed

The increase in money supply comes as the Central Bank of Nigeria (CBN) maintains a relatively tight monetary policy stance.

• At its 306th Monetary Policy Committee meeting in July 2026, the CBN unanimously retained the Monetary Policy Rate (MPR) at 26.50%.
• The apex bank also maintained other key monetary policy parameters as it continued efforts to support disinflation and preserve macroeconomic stability.

The decision to hold the benchmark rate suggests that the CBN is balancing the need to contain inflationary pressures against concerns over economic growth and financial conditions.

What you should know

Earlier, Nairametrics reported that CBN, on behalf of the Debt Management Office (DMO), will offer N700 billion across the 91-day, 182-day and 364-day Treasury Bills tenors at its first Nigerian Treasury Bills (NTB) auction for September 2026.

With August 12 and August 26 combined, the CBN allotted a cumulative N2.218 trillion against a combined N1.4 trillion offer for the month, underscoring how consistently the apex bank has allotted well beyond advertised sizes throughout Q3, particularly on the 364-day tenor.

Also, CBN withdrew N13.41 trillion from the financial system in January 2026, nearly five times higher than the N2.77 trillion mopped up in the same period last year, as money supply and private sector credit declined.