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Nigeria’s broad money supply (M3) increased for the second consecutive month, rising to N133.25 trillion in June 2026 from N129.21 trillion recorded in May, according to the latest money and credit statistics released by the Central Bank of Nigeria (CBN).
The N4.04 trillion month-on-month increase came as the apex bank maintained its benchmark Monetary Policy Rate (MPR) at 26.5 per cent, stressing its cautious approach to balancing liquidity in the economy with efforts to tame inflation and sustain macroeconomic stability.
Broad money supply, also known as M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
The latest figures showed that the money supply also recorded a significant year-on-year increase, climbing from N117.25 trillion in June 2025 to N133.25 trillion in June 2026, representing an increase of approximately N16 trillion, or 13.59 per cent.
A breakdown of the data showed that M2, which includes narrow money (M1), quasi-money, demand deposits and currency outside banks, rose to N133.24 trillion in June from N129.20 trillion in May.
The expansion in liquidity was driven mainly by growth in quasi-money and domestic assets during the review period.
Quasi-money increased from N84.58 trillion in May to N88.54 trillion in June, while demand deposits edged higher to N39.78 trillion from N39.43 trillion.
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However, currency held outside the banking system declined to N4.92 trillion in June from N5.19 trillion recorded a month earlier, indicating that more cash remained within the banking system.
Further analysis of the CBN data showed that net domestic assets rose by 4.37 per cent, increasing from N102.26 trillion in May to N106.73 trillion in June.
On the other hand, net foreign assets declined marginally by 1.56 per cent, falling from N26.95 trillion to N26.53 trillion during the same period.
Overall, broad money supply expanded by 3.11 per cent on a month-on-month basis, reflecting sustained liquidity growth despite the central bank’s tight monetary policy stance.
The latest money supply figures come days after the CBN retained the Monetary Policy Rate at 26.5 per cent at the conclusion of its 305th Monetary Policy Committee (MPC) meeting.
The committee also left all other monetary policy parameters unchanged, signalling its determination to sustain the ongoing disinflation process while safeguarding macroeconomic stability.
The continued increase in money supply highlights the challenge facing the apex bank as it seeks to strike a balance between supporting economic activity, managing liquidity and keeping inflationary pressures under control.
