Nigeria’s Money Supply Hits N124.4 Trillion as Currency Circulation Rises
Nigeria’s money supply (M²) rose by 1.2 percent month-on-month (MoM) to N124.4 trillion in December 2025, up from N122.9 trillion in November, according to the Central Bank of Nigeria’s (CBN) Money and Credit Statistics released over the weekend. This growth signals increased liquidity in the economy amid rising government and private sector credit.
Narrow money (M¹), which includes cash and demand deposits, surged by 4.05 percent to N42.14 trillion in December from N40.5 trillion the previous month. Demand deposits alone climbed 3.08 percent MoM to N36.7 trillion, reflecting more funds readily available for spending and investment. Meanwhile, Currency Outside Banks (COB) rose sharply by 10.2 percent to N5.4 trillion, indicating a rise in cash circulation despite the growing adoption of electronic payments.
However, not all components of the money supply grew. Quasi-money, which covers savings and time deposits, saw a slight decline of 0.18 percent MoM, falling to N82.25 trillion in December from N82.4 trillion in November. Analysts note that this suggests some savings may be shifting toward more liquid forms of money, possibly to meet increased consumption or investment demand.
The surge in money supply also mirrored a significant increase in credit. Banks’ lending to the government jumped 29.5 percent MoM to N34.2 trillion, while credit to the private sector rose by 1.6 percent to N75.8 trillion. Combined, this led to a 13.9 percent increase in net domestic credit, reaching N115.06 trillion in December from N100.98 trillion in November.
The increase in money supply and cash circulation comes amid Nigeria’s broader economic growth, expansionary monetary policies, and rising GDP. With currency in circulation reaching N5.7 trillion, up 9.6 percent from the previous month, the data highlights a vibrant financial landscape where both liquidity and credit availability are expanding, offering new opportunities for businesses and consumers alike.
source: vanguard