Nigeria’s broad money supply increased to N133.25 trillion in June 2026, highlighting continued liquidity growth despite the Central Bank of Nigeria’s (CBN) aggressive monetary tightening measures. Fresh data released by the apex bank showed that the country’s money supply rose from N129.21 trillion in May, representing a N4.04 trillion month-on-month increase, even as the Monetary Policy Rate (MPR) remained unchanged at 26.5 percent.
The rise in money supply indicates that more cash was available within the economy for households and businesses to spend, save, and invest. According to the CBN, the increase was largely driven by stronger domestic assets and a notable rise in quasi-money, which includes savings accounts and fixed deposits. Quasi-money climbed to N88.54 trillion in June from N84.58 trillion recorded in May, while demand deposits also experienced a slight increase to N39.78 trillion.
The report also revealed that cash circulating outside Nigeria’s banking system declined from N5.19 trillion to N4.92 trillion, suggesting that a greater share of money remained within the formal financial sector. At the same time, net domestic assets rose by 4.37 percent to N106.73 trillion, reinforcing the expansion in liquidity. However, net foreign assets recorded a slight decline of 1.56 percent, dropping to N26.53 trillion during the same period.
Despite the CBN’s decision to maintain one of Africa’s highest benchmark interest rates, the steady growth in money supply reflects the complex challenge of managing liquidity while fighting inflation. Overall, broad money supply expanded by 3.11 percent month-on-month, signalling that economic liquidity continues to increase even under a restrictive monetary policy environment.
The latest figures come shortly after the Monetary Policy Committee voted to retain the 26.5 percent Monetary Policy Rate and keep all other policy parameters unchanged. The CBN maintains that its tight monetary stance is necessary to sustain declining inflationary pressures and protect macroeconomic stability. However, financial analysts caution that sustained growth in money supply could complicate the central bank’s efforts to keep inflation under control if liquidity continues to outpace policy tightening.
source: punch
