Nigeria’s broad money supply (M3) rose to N110.98 trillion in January 2025.
This marks a 17.3 per cent year-on-year (YoY) increase from N94.61 trillion recorded in January 2024.
The surge in money supply comes at a critical time as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) meets on Wednesday, February 19, and Thursday, February 20, to decide on interest rates amid persistent inflationary concerns.
According to the latest credit and monetary statistics released by the CBN, net foreign assets stood at N35.39 trillion in January 2025, up from N29.73 trillion in January 2024, reflecting a 19 per cent YoY increase.
Similarly, net domestic assets grew by 16.5 percent YoY to N75.59 trillion, compared to N64.87 trillion a year ago.
The increase in M3 money supply, which includes both net foreign assets (NFA) and net domestic assets (NDA), provides a holistic picture of Nigeria’s monetary dynamics.
Nigeria’s money supply has expanded steadily over the past year, with notable increases in the second half of 2024.
As at November 2024, M3 stood at N108.97 trillion, rising further to N109.41 trillion in September 2024 before hitting its latest peak in January 2025.
The net foreign asset’ increase is likely due to improved external reserves, capital inflows, and a stronger trade balance, while that of the net domestic assets is likely due to increased lending, government borrowing, and broader credit expansion.
