Blog Details

Nigeria’s broad money supply (M3) fell to N123.36 trillion in January 2026, compared to N124.4 trillion recorded in December 2025.

The figures are contained in the latest monetary statistics released by the Central Bank of Nigeria.

Broad money, or M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.

The month-on-month decline indicates a slight moderation in overall liquidity conditions at the start of the year, although money supply remains significantly higher on a year-on-year basis.

Monetary aggregates indicate a mixed trend between domestic and external components of liquidity.

Despite the month-on-month contraction, M3 remains above January 2025 levels of approximately N111.11 trillion, reflecting sustained monetary growth over the year.

The movement in money supply comes against the backdrop of evolving monetary policy measures by the CBN.

The trends highlight the complex dynamics of domestic liquidity, external reserve management, and credit provision in shaping Nigeria’s monetary conditions.

At its 304th meeting of the Monetary Policy Committee (MPC) in February, CBN reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent from 27 per cent.

The apex bank also retained the Cash Reserve Ratio at 45.0 per cent for commercial banks and 16.0 per cent for merchant banks.

The National Bureau of Statistics (NBS) also reported that the headline inflation declined for the eleventh consecutive month to 15.1 per cent in January 2026, reflecting continued price moderation

The January 2026 monetary statistics suggest a measured start to the year, with domestic credit growth partially offsetting external pressures.

While net foreign assets declined, net domestic assets supported overall liquidity, reflecting ongoing lending to key sectors of the economy.