Nigeria's money supply hits N133.25tn despite tight monetary policy

Nigeria's money supply continued its upward trend, reaching N133.25 trillion in June 2026, a N4.04 trillion increase from May. This expansion occurred even as the Central Bank of Nigeria (CBN) maintained its benchmark Monetary Policy Rate at 26.5 percent, signaling a persistent growth in liquidity despite tight monetary controls.

The CBN's data reveals that the growth was primarily fueled by an increase in domestic assets and a rise in quasi-money, which includes savings and time deposits. Quasi-money grew to N88.54 trillion from N84.58 trillion, while demand deposits also saw a slight increase. This suggests that businesses and households had more funds available for spending and investment during June compared to the previous month.

While the increase in liquidity could potentially stimulate economic activity, analysts express concern that it might hinder the CBN's fight against inflation. The central bank is currently balancing the need to manage liquidity with its objective of curbing rising prices and ensuring macroeconomic stability. The latest figures underscore the challenge the CBN faces in achieving these dual goals amidst ongoing liquidity expansion.