Nigeria's Money Supply Drops to N123.36 Trillion in January

In January 2026, Nigeria's broad money supply, measured as M3, contracted to N123.36 trillion, a decrease from N124.4 trillion in December 2025, according to the latest monetary statistics released by the Central Bank of Nigeria. The M3 figure includes currency in circulation outside banks, demand deposits, savings, time deposits, and foreign currency deposits.

The month-on-month decline suggests a slight moderation in overall liquidity at the start of the year, although the money supply remains significantly higher than the N111.11 trillion recorded in January 2025, indicating sustained monetary growth year-on-year. This movement in money supply occurs against the backdrop of evolving monetary policy measures by the Central Bank of Nigeria, highlighting the complex dynamics of domestic liquidity and external reserve management.

The Central Bank retained a cash reserve ratio of 45.0% for commercial banks and 16.0% for merchant banks during its 304th Monetary Policy Committee meeting in February. Additionally, headline inflation declined for the eleventh consecutive month to 15.1% in January 2026, reflecting ongoing price moderation.