Money supply hits N146.6trn in September amid CBN’s rate cut

Nigeria’s broad money supply rose to N146.6 trillion in September 2026, an increase of about N7.51 trillion from N139.09 trillion in August, according to data published on the Central Bank of Nigeria’s (CBN) website on Wednesday.

The expansion represents monthly growth of approximately 5.4 per cent, extending the steady rise in money supply recorded through much of 2026.

Broad money, measured as M3, increased from N123.95 trillion in January to N146.6 trillion in September, indicating a substantial expansion in liquidity across the financial system over the first nine months of the year.

Broad money captures funds available across the economy, including currency outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.

Its expansion points to a higher stock of money within the financial system, although the data alone do not establish the extent to which the increase has translated into consumer spending or inflationary pressure.

The CBN data further showed that money supply stood at N125.19 trillion in April and N129.54 trillion in May. It rose from N133.27 trillion in June to N139.1 trillion in July, before reaching N139.09 trillion in August and N146.6 trillion in September.

Narrow money, which comprises currency in circulation and highly liquid deposits, increased from N43.11 trillion in August to N44.05 trillion in September. Currency outside banks also rose marginally, from N4.87 trillion to N4.92 trillion over the same period.

The rise in money supply followed the CBN’s decision to reduce its benchmark interest rate at its 307th Monetary Policy Committee (MPC) meeting in Abuja. The committee cut the Monetary Policy Rate (MPR) by 350 basis points to 23 per cent from 26.5 per cent, the largest reduction in the benchmark rate since December 2006.

Furthermore, the MPC also recalibrated the corridor around the MPR to +50 basis points and -300 basis points, while retaining the Cash Reserve Requirement (CRR) for commercial banks at 45 per cent. The CRR for merchant banks remained at 16 per cent, while the 75 per cent requirement on non-Treasury Single Account (TSA) public-sector deposits was also maintained.

The policy adjustment followed a period of tighter monetary conditions as the CBN sought to rein in inflation.

At its 306th MPC meeting in July 2026, the committee retained the MPR at 26.5 per cent.

In September 2025, the MPC had reduced the rate by 50 basis points to 27 per cent amid easing inflationary pressures, before retaining it at 27 per cent in November 2025 in a cautious approach to balancing price stability with economic growth.

The latest money-supply data and the sharp reduction in the MPR underline the CBN’s evolving policy stance: from prolonged tightening towards a more accommodative position aimed at supporting credit, investment and economic activity while preserving macroeconomic stability.