Money supply is surging in Nigeria, but inflation is rising even faster—forcing tough choices for the CBN.
Nigeria’s broad money supply (M3) rose to N114.22 trillion in March 2025—up 24% year-on-year—despite ongoing inflationary pressure, which spiked to 24.23%.
Month-on-month, M3 increased 3.2%, mainly due to a 38.9% jump in net foreign assets (NFA) to N45.17 trillion. Meanwhile, net domestic assets (NDA) fell 11.7% to N69.05 trillion, hinting at tighter local liquidity.
Other highlights:
M2: N114.20 trillion (up 24.2% YoY)
M1: N38.55 trillion (up 19.7% YoY)
MoM inflation: 3.90%, up from 2.04% in February
Despite a 50% Cash Reserve Ratio—meant to restrict liquidity—money supply continues expanding, likely driven by foreign inflows.
With inflation running hot and liquidity rising, analysts expect the CBN to consider a rate hike at its May MPC meeting. The challenge: tame inflation without choking recovery.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
