Nigeria’s broad money supply surged to N133.25 trillion in June 2026, highlighting continued liquidity growth in the economy despite the Central Bank of Nigeria’s (CBN) decision to maintain a high benchmark interest rate of 26.5 percent. The latest money and credit statistics released by the apex bank revealed that the country’s money supply increased by N4.04 trillion from N129.21 trillion recorded in May, reflecting strong expansion in domestic assets and savings-related deposits.
The figures show that broad money, also known as M3, which includes currency outside banks, demand deposits, savings deposits, time deposits, and foreign currency holdings, recorded a significant year-on-year increase from N117.25 trillion in June 2025. This represents a growth of approximately 13.6 percent, underscoring the steady rise in liquidity within the financial system despite the CBN’s tight monetary policy stance aimed at controlling inflation.
A closer look at the data indicates that the increase was largely driven by growth in quasi-money, which rose from N84.58 trillion in May to N88.54 trillion in June. Demand deposits also edged higher to N39.78 trillion, while currency held outside the banking system declined to N4.92 trillion from N5.19 trillion in the previous month. The trend suggests that more funds are being retained within the banking sector, strengthening deposit levels and supporting overall money supply growth.
The report further revealed that net domestic assets expanded by 4.37 percent, increasing from N102.26 trillion to N106.73 trillion, while net foreign assets recorded a slight decline to N26.53 trillion. Analysts note that the continued growth in domestic assets remains a key driver of liquidity expansion, even as authorities strive to strike a balance between economic growth and inflation control. Overall, broad money supply grew by 3.11 percent month-on-month, reflecting sustained financial activity across the economy.
The latest development comes amid the CBN’s commitment to maintaining a tight monetary policy framework. At its 305th Monetary Policy Committee (MPC) meeting, the apex bank retained the Monetary Policy Rate at 26.5 percent, alongside other key policy parameters, in a bid to sustain disinflation and preserve macroeconomic stability. While previous rate adjustments in 2025 were aimed at supporting economic activity, the continued rise in money supply suggests that liquidity conditions remain robust, raising fresh questions about the effectiveness of high interest rates in curbing monetary expansion and inflationary pressures in Nigeria.
source: nairametrics
