Nigeria’s money supply hits N133.25tn despite CBN holding rates at 26.5%

Nigeria’s broad money supply rose to N133.25tn in June 2026, up from N129.21tn in May, even as the Central Bank of Nigeria held its benchmark Monetary Policy Rate at 26.5 percent. The N4.04tn month-on-month increase shows that liquidity in the economy continued to expand despite the central bank’s tight monetary policy stance.

The data, released by the CBN on Wednesday, means businesses and households had more money to spend and invest in June than in May. Broad money is a comprehensive measure of the total money supply. It includes physical cash and highly liquid narrow money, plus less liquid assets such as savings accounts, time deposits, and money market funds.

Quasi-money and deposits drive the increase

Quasi-money, which consists largely of savings and time deposits, climbed to N88.54tn from N84.58tn. Demand deposits edged higher to N39.78tn from N39.43tn. However, currency held outside the banking system fell to N4.92tn from N5.19tn in the previous month. That decline suggests more cash remained within the formal banking system.

Net domestic assets rose 4.37 percent, increasing from N102.26tn in May to N106.73tn in June. In contrast, net foreign assets slipped 1.56 percent, dropping from N26.95tn to N26.53tn over the same period. Overall, broad money supply expanded 3.11 percent month-on-month.

CBN holds rates, analysts warn of inflation pressure

The increase in money supply comes as the CBN continues to balance liquidity management with efforts to curb inflation and preserve macroeconomic stability. The Monetary Policy Committee met this week and retained the Monetary Policy Rate at 26.5 percent. The committee also left all other monetary policy parameters unchanged, arguing that maintaining a tight policy stance would help sustain the disinflation process and support macroeconomic stability.

Analysts warn that the expansion in money supply could make it more difficult for the apex bank to contain inflation.

For the naira and Nigerian businesses, the steady growth in money supply means more liquidity is available for spending and investment, but it also raises the risk that inflation will stay elevated. If the CBN cannot tighten enough to mop up the excess cash, pressure on consumer prices and the exchange rate could persist.