Nigeria’s money supply grows to N124.4 trn

…As currency in circulation hits N5.4 trn… Credit to the government rises 29%.

By Elizabeth Adegbesan

Nigeria’s Money Supply (M²) grew by 1.2 percent month-on-month (MoM) to N124.4 trillion in December 2025, from N122.9 trillion in November 2025, reflecting a slight increase in economic activities during this period.

The Central Bank of Nigeria (CBN) disclosed this today in its Money and Credit Statistics Data for December 2025, which indicated that the money supply components also recorded increases during the period except for quasi-money.

Narrow money (M¹) grew by 4.05 percent MoM to N42.14 trillion in December from N40.5 trillion in November.

Likewise, demand deposits rose by 3.08 percent MoM to N36.7 trillion in December from N35.6 trillion in November.

Similarly, currency outside banks, COB, rose by 10.2 percent MoM to N5.4 trillion in December from N4.9 trillion in November.

However, quasi money fell by 0.18 percent MoM to N82.25 trillion in December from N82.4 trillion in November.

The rise in money supply was reflected in banks’ credit to the government and private sector, which increased by 29.5 percent and 1.6 percent, respectively, during the period.

Vanguard’s analysis of the data showed that credit to the government grew by 29.5 percent MoM to N34.2 trillion in December from N26.35 trillion in November.

Likewise, credit to the private sector rose by 1.6 percent MoM to N75.8 trillion in December from N74.6 trillion in November.

This resulted in a 13.9 percent MoM increase in net domestic credit of N115.06 trillion in December from N100.98 trillion in November.

The increase in money supply is also reflected in currency in circulation, which grew by 9.6 percent MoM to N5.7 trillion in December 2025 from N5.2 trillion in November 2025, suggesting more cash in circulation despite the adoption of electronic payment systems, expansionary monetary policy, and increased Gross Domestic Product.

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