Nigeria’s money supply rises to N139.38 trillion in August, up 16.4% YoY

Nigeria's broad money supply, denoted as M3, surged to N139.38 trillion in August 2026, reflecting a 16.4% year-on-year increase from N119.69 trillion in August 2025. The Central Bank of Nigeria (CBN) reported this data on its website, noting a 0.4% month-on-month rise from N138.78 trillion in July. This expansion follows the CBN's persistent tight monetary policy stance, with the Monetary Policy Rate (MPR) remaining at 26.50% during its July 2026 Monetary Policy Committee meeting.

The upward trajectory of money supply continued, extending the positive trend observed over the past few months. M3 expanded from N123.95 trillion in January to N124.99 trillion in April, N129.21 trillion in May, N133.25 trillion in June, N138.78 trillion in July, and finally reached N139.38 trillion in August. The growth in net domestic assets significantly outweighed the decrease in net foreign assets, leading to the overall rise in broad money.

The CBN's actions aim to tackle inflation and maintain macroeconomic stability, balancing inflation-control goals with considerations of economic growth and financial conditions. The Monetary Policy Committee (MPC) is set to convene next week in Abuja. Notably, a recent report by Nairametrics suggested that the US Federal Reserve's recent 25 basis points interest rate hike could exert additional pressure on emerging markets as investors reevaluate the returns on dollar-denominated assets.

The current money supply level now exceeds the CBN's projected reserve level of about $51.04 billion for the entire year of 2026.