Nigeria’s money supply climbs to $98 billion despite tight monetary policy

Nigeria’s broad money supply increased to N133.25 trillion ($98 billion) in June 2026, underscoring resilient liquidity growth even as the Central Bank of Nigeria (CBN) maintained one of Africa’s highest benchmark interest rates to combat inflation.

Latest CBN data showed money supply rose from N129.21 trillion ($95 billion) in May, marking a N4.04 trillion ($3 billion) month-on-month increase. The expansion points to continued growth in cash and deposits circulating across the economy despite an aggressive monetary tightening cycle.

Higher deposits drive money supply growth

The increase was largely fueled by stronger domestic assets and a rise in quasi-money, which includes savings accounts and time deposits.

Quasi-money climbed to N88.54 trillion ($64 billion) in June from N84.58 trillion ($62 billion) a month earlier, reflecting higher household and corporate savings. Demand deposits also edged up to N39.78 trillion ($29 billion) from N39.43 trillion ($28 billion).

The latest figures suggest businesses and consumers had greater access to liquidity for spending, investment and commercial activity, even as borrowing costs remained elevated.

CBN balances inflation fight with economic stability

The money supply data followed the Monetary Policy Committee’s decision to leave the Monetary Policy Rate (MPR) unchanged at 26.5%, reinforcing the central bank’s commitment to containing inflation while safeguarding macroeconomic stability.

Nigeria’s monetary policy framework also retains a 40% Cash Reserve Ratio (CRR) for commercial banks and a 30% Liquidity Ratio, giving policymakers multiple tools to regulate credit growth and financial system liquidity.

Broad money represents the total amount of money circulating in an economy, including physical cash, current account balances, savings deposits, time deposits and other liquid financial assets that can be readily converted into cash.

While higher interest rates typically slow money creation, June’s increase indicates that deposit growth and domestic liquidity continued to outweigh the tightening effects of monetary policy. Investors will closely monitor whether the expanding money supply translates into stronger economic growth or adds pressure to Nigeria’s inflation outlook.