Nigeria's Money Supply Rises to N139.38 Trillion in August, Up 16.4% YoY
By Aboki Forex —
Nigeria's broad money supply, M3, rose to N139.38 trillion in August 2026, up 16.4% from N119.69 trillion in August 2025. The figure also increased by 0.4% month-on-month from N138.78 trillion in July, according to data published on the Central Bank of Nigeria website.
The August rise amounted to about N601.6 billion compared with July. It extends the upward trend in money supply through 2026, even as the CBN keeps monetary conditions relatively tight.
Money Supply Trend in 2026
M3 moved from N123.95 trillion in January to N124.99 trillion in April. It then climbed to N129.21 trillion in May, N133.25 trillion in June, N138.78 trillion in July and N139.38 trillion in August.
Broad money captures funds available across the economy. It includes currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
Domestic Assets Drive the Increase
Net domestic assets rose to N101.99 trillion in August from N101.07 trillion in July, an increase of about N925.5 billion.
Net foreign assets declined to N37.39 trillion from N37.71 trillion over the same period, falling by about N323.9 billion.
The rise in net domestic assets more than offset the decline in net foreign assets, contributing to the overall increase in broad money.
CBN Policy Stance
The expansion comes as the CBN maintains a relatively tight monetary policy stance. At its 306th Monetary Policy Committee meeting in July 2026, the apex bank unanimously retained the Monetary Policy Rate at 26.50% and maintained other key monetary policy parameters.
Earlier, in September 2025, the MPC reduced the MPR by 50 basis points to 27% to support economic activity amid easing inflationary pressures. In November 2025, the committee maintained the MPR at 27%, adopting a cautious stance to balance price stability with growth support.
The CBN's MPC is scheduled to meet next week in Abuja.
Reserves and External Pressure
Nigeria's gross foreign exchange reserves rose by $12.76 billion year-on-year to $54.61 billion as of September 14, 2026. The external reserves have grown by $7.09 billion since the beginning of 2026, surpassing the CBN's projected reserve level of about $51.04 billion for the whole of 2026.
Earlier, Nairametrics reported that the US Federal Reserve's decision to raise interest rates by 25 basis points could increase pressure on emerging markets as investors reassess returns available from dollar-denominated assets.
What It Means
For the naira, consumers and businesses, money supply growth matters because it reflects liquidity in the economy. The CBN has held the MPR at 26.50% to contain inflation and preserve macroeconomic stability. The next MPC meeting will signal whether that tight stance continues.