Inflation fears grow as Nigeria’s money supply rises above N133tn
By Aboki Forex —
Nigeria’s broad money supply hit N133.25 trillion in June 2026, up from N129.21 trillion in May, even as the Central Bank of Nigeria held the Monetary Policy Rate at 26.5%. The CBN released the data on Wednesday, July 22, showing liquidity in the economy expanded by N4.04 trillion month-on-month despite the apex bank’s tight monetary stance.
The increase means households and businesses had more funds available for spending and investment in June than in the previous month. It also highlights the challenge facing the CBN as it tries to balance economic growth with price stability.
Drivers of the money supply growth
Broad money includes cash, demand deposits, savings, time deposits, and other liquid financial assets. According to the CBN data, the rise was largely driven by stronger domestic assets and growth in quasi-money.
Quasi-money, which covers savings and fixed-term deposits, climbed to N88.54 trillion in June from N84.58 trillion in May. Demand deposits rose modestly to N39.78 trillion from N39.43 trillion. Cash held outside the banking system declined to N4.92 trillion from N5.19 trillion, suggesting more cash stayed within the formal banking sector.
Domestic assets rise, foreign assets fall
Net domestic assets increased by 4.37% to N106.73 trillion in June from N102.26 trillion in May. Net foreign assets moved the opposite direction, falling 1.56% to N26.53 trillion from N26.95 trillion over the same period. Overall, broad money supply expanded by 3.11% month-on-month.
The figures come shortly after the CBN’s Monetary Policy Committee voted to retain the MPR at 26.5% and left all other key parameters unchanged. The committee maintained that the current tight policy is necessary to support the ongoing disinflation process and preserve macroeconomic stability.
What it means for the naira and consumers
Economists have warned that sustained growth in liquidity could complicate the CBN’s fight against inflation by increasing the amount of money available for spending across the economy. More liquidity, if not matched by output, could put upward pressure on prices and weaken the naira’s purchasing power. For consumers, that means the cost of goods and services may stay elevated, especially if the money supply continues to grow faster than the economy can absorb.