Nigeria's Money Supply Drops Amid Central Bank Rate Cut

Nigeria's broad money supply (M3) dropped to N117.78 trillion in September 2025, a 1.6% decline from August. The decrease was influenced by the Central Bank of Nigeria's decision to cut the Monetary Policy Rate (MPR) for the first time in five years.

Despite the rate cut, domestic credit conditions tightened, with net domestic assets falling by 2.5%. Governor Olayemi Cardoso emphasized a balanced approach to growth and inflation risks.

The net foreign assets slightly increased, providing some cushion against the contraction in domestic assets.