Nigeria’s money supply rises to N147tn in September

File: CBN Building, Abuja

Nigeria’s broad money supply rose by N7.51tn in September 2026 to N146.6tn, as liquidity in the financial system continued to expand.

Data published by the Central Bank of Nigeria showed that money supply, measured as M3, increased by 5.4 per cent from N139.09tn in August.

The increase brings money supply growth since January to N22.65tn, or 18.3 per cent, from N123.95tn.

The expansion comes amid a shift in monetary policy, following the CBN’s decision in September to cut its benchmark interest rate to 23 per cent from 26.5 per cent.

CBN data showed that broad money supply rose from N125.19tn in April to N129.54tn in May, before increasing to N133.27tn in June and N139.1tn in July.

It dipped marginally to N139.09tn in August before surging to N146.6tn in September.

Narrow money, which comprises currency and highly liquid deposits, also increased from N43.11tn in August to N44.05tn in September.

Currency held outside banks rose from N4.87tn to N4.92tn during the period.

Broad money includes cash, demand deposits, savings and time deposits, as well as foreign currency deposits. Its growth indicates an increase in funds held across the financial system but does not necessarily mean the entire amount has translated into consumer spending.

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The increase in money supply followed the CBN’s decision at its 307th Monetary Policy Committee meeting in September to cut the Monetary Policy Rate by 350 basis points to 23 per cent.

The reduction was the largest cut in the benchmark rate since December 2006.

The committee adjusted the interest rate corridor to plus 50 basis points and minus 300 basis points, while retaining the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent.

The 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits was also retained.

The decision followed the MPC’s July meeting, where it kept the benchmark rate at 26.5 per cent as it weighed inflation control against the need to support economic activity.

In September 2025, the committee cut the rate by 50 basis points to 27 per cent and retained it at that level in November.

The latest expansion in money supply raises questions about how liquidity will affect inflation, lending and economic growth. Its impact will depend on how much of the additional funds flow into credit and spending across the economy.