Nigeria’s money supply records first drop in 2025, falls to N110.32 trillion

Nigeria’s money supply declined for the first time in 2025, dropping to N110.32 trillion in February from N110.94a trillion in January, according to data from the Central Bank of Nigeria (CBN). This 0.56% month-on-month decrease comes as the CBN continues to manage liquidity and stabilize the economy ¹.

Despite this decline, the money supply remains significantly higher than the same period last year, with a year-on-year increase of 15.45%. The M3 money supply, which includes net foreign assets and net domestic assets, provides a broader view of Nigeria’s monetary dynamics.

A closer look at the underlying components reveals that net foreign assets dropped by 8.62% to N32.34 trillion in February, possibly due to lower external reserves or increased foreign exchange interventions by the CBN. On the other hand, net domestic assets rose by 3.21% to N77.97 trillion, indicating continued credit expansion within the local economy.

The decline in overall money supply, despite the rise in narrow money and net domestic assets, suggests a shift in the structure of liquidity. With inflation still elevated and the naira showing signs of stability, the slight contraction in February’s money supply could provide room for the CBN to fine-tune its policy tools.