Nigeria’s money supply falls to N123.15trn

Nigeria’s broad money supply (M3) declined slightly to N123.15 trillion in February 2026, down from N123.36 trillion recorded in January, according to the latest money and credit statistics released by the Central Bank of Nigeria (CBN). Despite the marginal month-on-month dip, the figures show a strong year-on-year expansion compared to N110.71 trillion in February 2025, […]

Nigeria’s broad money supply (M3) declined slightly to N123.15 trillion in February 2026, down from N123.36 trillion recorded in January, according to the latest money and credit statistics released by the Central Bank of Nigeria (CBN).

Despite the marginal month-on-month dip, the figures show a strong year-on-year expansion compared to N110.71 trillion in February 2025, underscoring sustained liquidity growth across the economy.

Broad money (M3) represents the total money available within the economy, including currency in circulation, demand deposits, savings, time deposits, and foreign currency holdings—making it a key indicator for economic activity, investment, and lending conditions.

A breakdown of the data revealed subtle monthly shifts across major components of money supply. Narrow money (M2), which excludes foreign currency deposits, also edged down to N123.14 trillion from N123.35 trillion in January, suggesting a mild tightening in short-term liquidity.

Net foreign assets dropped to N28.41 trillion from N29.61 trillion, indicating reduced external liquidity inflows, while net domestic assets rose to N94.74 trillion from N93.76 trillion, driven by increased credit to the domestic economy and financial sector activity.

This trend reflects a gradual rebalancing of liquidity sources, with domestic credit playing a more significant role in sustaining overall monetary expansion amid declining external buffers.

The development comes against the backdrop of ongoing macroeconomic adjustments, as the Central Bank of Nigeria continues efforts to stabilise prices, manage inflation, and support the naira under persistent external pressures.

Over the past year, monetary authorities have maintained a relatively tight policy stance aimed at curbing inflation and controlling excess liquidity. In September 2025, the Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent in a bid to stimulate economic activity, while retaining a cautious posture.

Overall, the marginal drop in money supply does not indicate an economic contraction but rather reflects the delicate balancing act facing policymakers—managing liquidity to support growth while keeping inflationary pressures in check.

Going forward, close monitoring of money supply trends, especially movements in M2 and net foreign assets, will remain crucial for policymakers as they navigate the complex interplay between inflation control, exchange rate stability, and economic expansion.

 

Credit to private sector grows by N380bn in one month

The data further showed a slight improvement in the bank’s credit to the private sector (CPS) from N75.241 trillion in January to N75.62.

The CPS includes loans, trade credits and other account receivables and supports provided by banks to the private sector within a period. The CPS is a global measure of the banking sector’s balance sheet resilience and contribution to the national economic agenda.