Money Supply Up 12.4% YtD to N139.38tn Despite CBN Tightening Stance
Kayode Tokede Nigeria’s broad money supply (M3) jumped 12.4 per cent Year till Date (YtD) to an all-time high of N139.38 trillion in August 2026, defying the Central Bank of
In August 2026, Nigeria's broad money supply (M3) surged 12.4 percent year-to-date, reaching an all-time high of N139.38 trillion, despite the Central Bank of Nigeria (CBN) tightening monetary policy. M3 encompasses cash, large-scale deposits, and financial assets that impact lending, investment, and inflation. The CBN's monetary tightening aimed to curb inflation and stabilize the Naira in foreign exchange markets.
Despite this, M3 saw a year-on-year increase of 16.5 percent, growing from N119.69 trillion in August 2025. The surge in money supply was primarily driven by higher net foreign assets, which climbed to N37.39 trillion, a 10.1 percent YoY decrease from N41.59 trillion in August 2025. Meanwhile, net domestic assets surged to N101.99 trillion, up 31 percent YoY from N78.11 trillion in August 2025.
This balancing act highlights the CBN's efforts to maintain liquidity, stabilize the FX market, and curb inflation.
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