Nigeria’s broad money supply (M3) increased to N129.21 trillion in May 2026, reflecting continued expansion in liquidity across the economy despite the Central Bank of Nigeria’s decision to maintain a tight monetary policy stance.
Broad money, or M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
Latest data from the Central Bank of Nigeria (CBN) showed that M3 rose to N129.21 trillion in May from N124.99 trillion recorded in April 2026, representing a month-on-month increase of 3.38%.
On a year-on-year basis, broad money supply grew from N119.20 trillion in May 2025, indicating sustained growth in money stock over the past 12 months.
What the data is saying
The increase in broad money supply was supported by growth in quasi-money, net foreign assets, and net domestic assets during the review period.
- Narrow money (M2), which includes currency in circulation and demand deposits, increased to N129.20 trillion from N124.98 trillion in April.
- Quasi-money climbed to N84.58 trillion in May from N81.22 trillion in April.
- CBN Bills held by money-holding sectors edged higher to N9.66 billion from N9.65 billion.
The data suggests that liquidity conditions remained accommodative despite elevated interest rates aimed at containing inflationary pressures.
More insights
Further analysis showed that both foreign and domestic asset positions contributed to the expansion in money supply.
- Net foreign assets rose significantly to N26.95 trillion in May from N24.01 trillion in April.
- Net domestic assets increased to N102.26 trillion from N100.97 trillion during the same period.
The increase in net foreign assets reflects stronger external asset accumulation within the banking system.
Growth in domestic assets also points to continued expansion in credit and other domestic financial holdings.
The simultaneous rise in both foreign and domestic assets underscores the broad-based drivers behind the increase in money supply.
What you should know
The latest money supply figures come against the backdrop of the Central Bank of Nigeria’s decision to retain its benchmark interest rate at 26.50%.
- At its 305th Monetary Policy Committee (MPC) meeting held on May 19–20, 2026, the CBN unanimously voted to maintain the Monetary Policy Rate (MPR) at 26.50%.
- The apex bank also retained other key monetary parameters as part of efforts to sustain disinflation and preserve macroeconomic stability.
- Despite the tight policy stance, monetary aggregates have continued to expand, reflecting underlying liquidity growth within the financial system.
Earlier in September 2025, the Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent, aiming to support economic activity amid easing inflationary pressures.
The rise in broad money supply will likely remain a key indicator for policymakers as they balance economic growth objectives with efforts to contain inflation and stabilise the foreign exchange market.
