Nigeria’s Broad Money Supply Rises to ₦133.25 Trillion in June

Nigeria’s broad money supply (M_2) surged to ₦133.25 trillion in June 2026, marking a 3.11% month-on-month increase from ₦129.21 trillion recorded in May, according to official data released by the Central Bank of Nigeria (CBN).

The liquidity growth occurred despite the central bank maintaining its benchmark Monetary Policy Rate (MPR) at 26.5% in an ongoing attempt to curb inflation and stabilize the economy.

Key Financial Highlights

Broad Money Supply (M_2): Rose by ₦4.04 trillion (+3.11%) to reach ₦133.25 trillion.

Quasi-Money: Increased significantly to ₦88.54 trillion from ₦84.58 trillion in May, indicating higher growth in savings and time deposits.

Demand Deposits: Grew slightly to ₦39.78 trillion, compared to ₦39.43 trillion recorded the previous month.

Cash Outside Banks: Dropped to ₦4.92 trillion from ₦5.19 trillion, pointing to an increased volume of physical currency remaining within formal banking channels.

Shift in Assets and Policy Impact

A breakdown of the central bank’s statistics indicates that Net Domestic Assets (NDA) drove the majority of the liquidity expansion, growing by 4.37% from ₦102.26 trillion in May to ₦106.73 trillion in June. Conversely, Net Foreign Assets (NFA) dipped 1.56%, falling from ₦26.95 trillion to ₦26.53 trillion over the same period.

The expansion in available liquidity implies higher spending and investment capacity across businesses and households during June. However, financial analysts caution that sustained liquidity growth under a high-interest-rate environment poses a hurdle for monetary authorities, as increased money supply can exacerbate inflationary pressures and complicate price stabilization efforts.

The surge in money supply coincides with the Monetary Policy Committee’s decision to retain the MPR at 26.5% alongside other existing key parameters, maintaining that a tight monetary stance remains essential to supporting long-term disinflation.