Nigeria’s broad money supply (M3) increased to N119.04 trillion in October 2025 from N117.78 trillion in September.
This is according to figures from the money and credit statistics data on the website of the Central Bank of Nigeria.
Broad money supply, or M3, is the widest measure of liquidity in the economy. It covers narrow money, quasi money and other liquid financial assets held by the public.
The data shows an increase of N1.25 trillion, equal to 1.06 per cent month on month while on a year-on-year basis, M3 rose by N11.04 trillion or 10.22 per cent compared with N107.99 trillion in October 2024.
The increase in M3 came weeks after the Monetary Policy Committee (MPC) of the CBN reduced the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent at its September 2025 meeting.
It was the first policy rate cut since 2020 and was taken against the backdrop of easing inflation and improving foreign exchange conditions.
The October increase shows a larger stock of cash and near-cash instruments available for spending, saving and investment.
The key driver of the October increase in M3 was net domestic assets (NDA), which rose from N76.12 trillion in September to N84.23 trillion in October, representing an increase of N8.11 trillion, equal to 10.65 per cent in a single month, being one of the strongest monthly increases recorded in 2025.
NDA captures the banking sector’s claims on government and the private sector, as well as other domestic financial positions.
This strong growth in NDA more than offset a sharp fall in net foreign assets (NFA). NFA dropped from N41.66 trillion in September to N34.80 trillion in October, a decline of N6.86 trillion or 16.45% month on month.
Year on year, NFA is still significantly higher, rising from N20.79 trillion in October 2024 to N34.80 trillion in October 2025, an increase of N14.01 trillion or 67.41 per cent.
Money supply, measured as M2, also recorded a modest increase in October, growing from N117.77 trillion in September to N119.03 trillion in October, a gain of N1.25 trillion or 1.06 per cent. On a year-on-year basis, M2 increased from N107.99 trillion in October 2024 to N119.03 trillion in October 2025, equal to a 10.22 per cent rise.
M2 includes narrow money and quasi money, such as savings and time deposits and provides a picture of the most commonly used money balances for transactions and short-term financial decisions.
Narrow money, or M1, which covers currency in circulation and demand deposits, which showed a smaller movement. It rose from N39.11 trillion in September to N39.35 trillion in October, an increase of N239.0 billion or 0.61 per cent. Year on year, narrow money increased by N4.56 trillion or 13.12 per cent from N34.78 trillion in October 2024.
