Nigeria's broad money supply (M3) expanded to N129.21 trillion in May 2026, according to the latest data from the Central Bank of Nigeria, reflecting sustained liquidity growth even as the CBN holds interest rates at elevated levels.
The figure represents a month-on-month increase of 3.38% from N124.99 trillion recorded in April 2026. On a year-on-year basis, M3 grew from N119.20 trillion in May 2025, underscoring the steady expansion of money stock over the past 12 months.
Broad money (M3) includes currency in circulation outside banks, demand deposits, savings and time deposits, and foreign currency deposits.
Narrow money (M2), which covers currency in circulation and demand deposits, rose to N129.20 trillion in May from N124.98 trillion in the prior month. Quasi-money climbed to N84.58 trillion from N81.22 trillion over the same period. CBN Bills held by money-holding sectors edged marginally higher to N9.66 billion from N9.65 billion.
The latest money supply data arrives against the backdrop of the CBN's decision to hold its benchmark interest rate at 26.50%. At its 305th Monetary Policy Committee meeting held on May 19–20, 2026, the MPC voted unanimously to retain the Monetary Policy Rate, alongside other key parameters, as part of efforts to sustain disinflation and maintain macroeconomic stability.
The data suggests liquidity conditions have remained accommodative despite the tight policy stance aimed at containing inflationary pressures.
A breakdown of the drivers shows that both foreign and domestic asset positions contributed to the money supply expansion. Net foreign assets rose significantly to N26.95 trillion in May from N24.01 trillion in April, reflecting stronger external asset accumulation within the banking system. Net domestic assets increased to N102.26 trillion from N100.97 trillion during the same period, pointing to continued expansion in credit and other domestic financial holdings.
Looking back, the MPC reduced the MPR by 50 basis points to 27% in September 2025 in a bid to support economic activity as inflation pressures eased. The committee then held the rate at 27% in November 2025, adopting a cautious approach to balance price stability with growth support.
The continued rise in broad money supply will remain a key indicator for policymakers as they weigh economic growth objectives against the need to contain inflation and stabilise the foreign exchange market. For businesses and taxpayers, the persistent liquidity expansion signals that financing conditions may remain relatively accessible even as the CBN maintains its restrictive policy posture.
