Nigerians Boost Savings as Quasi-Money Climbs 3.65% in March 2025 Amid Economic Uncertainty

Nigerians are leaning into savings as the economy faces continued uncertainty, with quasi-money—highly liquid financial assets like savings and fixed deposits—rising 3.65% month-on-month to N75.65 trillion in March 2025. This jump from N72.98 trillion in February reflects growing public preference for interest-bearing, low-risk assets. According to data from the Central Bank of Nigeria (CBN), quasi-money also saw a significant 26.42% increase year-on-year, reinforcing a broader shift toward safer financial strategies.

The rise in quasi-money highlights how Nigerians are prioritizing financial stability, with many turning to fixed-term deposits and savings accounts that offer higher yields amid tightened monetary conditions. The CBN’s ongoing fight against inflation has kept interest rates high, making these instruments more attractive. Simultaneously, robust demand for treasury bills has also played a key role, with billions in oversubscriptions recorded in early 2025, indicating investor appetite for secure, government-backed returns.

Money supply trends paint a clearer picture of these changes. Broad Money Supply (M2) reached N114.20 trillion in March, a 3.17% rise from the previous month and 23.69% higher than a year ago. Within that, demand deposits hit N33.96 trillion (up 17.65% year-on-year), while currency outside banks grew 26.72% to N4.59 trillion. The surge in quasi-money not only reinforces the public’s trust in the financial system but also highlights the success of financial inclusion efforts, particularly the expansion of digital and formal banking access across Nigeria.

Meanwhile, credit dynamics suggest a cautious lending environment. Net Domestic Credit rose 12.47% year-on-year to N103.37 trillion but dipped 1.20% month-on-month. Credit to the government increased by nearly 32% annually before easing slightly in March, while private sector credit grew at a slower pace of 7.10%. These trends point to restrained borrowing amid economic headwinds, as businesses and individuals alike prioritize liquidity and safety over risk-taking.

Source: Nairametrics