Nigeria’s money supply expanded sharply in late 2025, raising fresh questions about liquidity management under tight monetary policy conditions.
Nigeria’s broad money supply (M3) rose to ₦122.95 trillion in November 2025, up from ₦119.04 trillion in October, according to new data from the Central Bank of Nigeria (CBN). The increase signals continued liquidity expansion in the banking system despite the CBN’s relatively tight monetary stance.
The month-on-month rise of ₦3.91 trillion was driven by growth in both net domestic assets (NDA) and net foreign assets (NFA). NDA climbed to ₦85.57 trillion, reflecting higher credit to government and the private sector, while NFA increased to ₦37.38 trillion, more than double its level in November 2024, pointing to stronger foreign inflows and improved external buffers.
Other monetary aggregates also rose, with M2 and M1 increasing, indicating higher transactional balances. While rising liquidity supports economic activity, it complicates efforts to control inflation and stabilize the exchange rate, explaining why the CBN held policy rates steady in November.
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