Nigeria’s broad money supply rose to ₦138.78 trillion in July 2026, representing a 16 per cent increase compared with the ₦119.89 trillion recorded in July 2025.
The latest figures are contained in monetary statistics released by the Central Bank of Nigeria (CBN).
On a month-on-month basis, broad money supply, measured as M3, increased by ₦5.52 trillion, or 4.14 per cent, from ₦133.25 trillion in June.
The increase extended the steady expansion in money supply recorded through the second quarter of 2026.
Broad money captures the funds available across the economy and includes currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign-currency deposits.
Money supply maintains upward trend
The latest data show that Nigeria’s M3 has continued to rise through 2026, increasing from ₦123.95 trillion in January to ₦138.78 trillion in July.
M3 stood at ₦123.12 trillion in February, before rising to ₦124.99 trillion in April, ₦129.21 trillion in May and ₦133.25 trillion in June.
The continued increase points to expanding liquidity within the financial system. However, the composition of the money supply remains important in determining its potential implications for inflation, credit availability and broader economic activity.
The July increase was accompanied by a sharp rise in net foreign assets.
Net foreign assets climbed to ₦37.71 trillion in July, up from ₦26.53 trillion in June. This represents an increase of ₦11.18 trillion, or approximately 42.15 per cent month-on-month.
The rise indicates that the external position of the banking system made a stronger contribution to the overall expansion in monetary aggregates during the month.
However, the increase was partly offset by a decline in net domestic credit.
Net domestic credit fell to ₦101.07 trillion in July from ₦106.73 trillion in June, representing a decline of about ₦5.66 trillion, or 5.30 per cent.
M2 also records growth
Money supply measured by M2 also expanded during the month.
M2 rose to ₦138.77 trillion in July, compared with ₦133.24 trillion in June.
The movement broadly mirrored the increase in M3, reflecting an overall expansion in monetary aggregates across the banking system.
The rise in liquidity comes despite the CBN maintaining a relatively tight monetary policy stance as it continues efforts to contain inflationary pressures and preserve macroeconomic stability.
CBN maintains 26.5% interest rate
At its 306th Monetary Policy Committee meeting in July 2026, the CBN unanimously retained the Monetary Policy Rate (MPR) at 26.50 per cent.
The apex bank also retained other key monetary policy parameters as it continued to pursue its disinflation and macroeconomic stability objectives.
The decision to keep the benchmark interest rate unchanged reflects the CBN’s balancing act between containing inflationary pressures and supporting economic growth and financial conditions.
CBN continues liquidity management
The latest increase in money supply comes amid continued efforts by the CBN to manage liquidity in the financial system.
The apex bank, acting on behalf of the Debt Management Office (DMO), is scheduled to offer ₦700 billion across the 91-day, 182-day and 364-day Nigerian Treasury Bills tenors at its first NTB auction for September 2026.
The CBN had also allotted a cumulative ₦2.218 trillion at the August 12 and August 26 auctions, against a combined offer of ₦1.4 trillion.
The figures indicate that the apex bank consistently allotted above advertised amounts during the third quarter, particularly on the 364-day tenor.
Earlier in the year, the CBN withdrew ₦13.41 trillion from the financial system in January 2026, nearly five times the ₦2.77 trillion withdrawn during the same period in 2025, amid movements in money supply and private-sector credit.
The latest monetary data therefore show that while the CBN continues to maintain a tight policy stance and actively manage liquidity, broad money supply has continued to expand, reaching a new high of ₦138.78 trillion in July.