Nigeria's Money Supply Drops to N123.15 Trillion in February

In February 2026, Nigeria's broad money supply (M3) fell to N123.15 trillion, down from N123.36 trillion in January 2026, according to data released by the Central Bank of Nigeria (CBN). This decline occurs despite a significant year-on-year increase from N110.71 trillion recorded in February 2025, indicating ongoing liquidity expansion within the economy.

The broad money supply encompasses total liquid assets available for spending, investment, and lending, including currency in circulation and demand deposits. The decrease in M3 is attributed to minor monthly adjustments alongside robust annual growth, a combination of falling foreign assets and rising domestic assets, suggesting a rebalancing of liquidity sources within the economy.

The CBN has maintained a tight monetary stance to stabilize prices and manage liquidity amid external pressures, retaining the cash reserve ratio at 45.0% for commercial banks and 16.0% for merchant banks during its 304th Monetary Policy Committee (MPC) meeting in February. The decline in money supply does not indicate an economic contraction but highlights the delicate balance between liquidity, inflation, and growth.