Nigeria's Money Supply Jumps to N119 Trillion in October
- Nigeria’s broad money supply rose from N117.78 trillion in September to N119.04 trillion in October 2025, reversing the previous month’s slowdown
- The increase in money supply reflects rising net domestic assets, which jumped by N8.11 trillion in one month
- Despite the rise in domestic assets, net foreign assets fell sharply by N6.86tn (16.45%), signalling renewed external pressures on the economy
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Data from the Central Bank of Nigeria (CBN) has revealed that money supply in the country has increased from N117.78 trillion in September to N119.04 trillion in October 2025.
The increase represents N1.25 trillion, equivalent to 1.06%, on a month-on-month comparison. Meanwhile, the data showed a 10.22% increase from the N107.99 trillion recorded in October 2024.
Source: Getty Images
Money supply rose in October 2025, a movement that followed the MPC’s September decision to cut the Monetary Policy Rate by 50 basis points to 27%, the first interest rate reduction since 2020.
Net domestic assets also climbed sharply, increasing from N76.12 trillion in September to N84.23 trillion in October, a jump of N8.11 trillion or 10.65%. This increase was reportedly driven by stronger domestic credit conditions, higher government borrowing, and more lending by banks to the private sector.
In contrast, net foreign assets fell from N41.66 trillion to N34.80 trillion within the same period, a decline of N6.86 trillion or 16.45% month-on-month, signalling fresh external pressures even though the figure remains N14.01 trillion higher than it was in October 2024.
CBN data also shows that M2, another measure of money supply, inched up from N117.77 trillion in September to N119.03 trillion in October, an increase of N1.25 trillion or 1.06%.
Compared with October 2024, M2 expanded by N11.04 trillion or 10.22%; this category covers cash, savings, and deposit balances typically used for routine transactions and short-term financial decisions.
The data further indicates that narrow money (M1) rose only slightly, moving from N39.11tn in September to N39.35tn in October, representing a growth of N239bn or 0.61%. On a year-on-year basis, M1 increased by N4.56 trillion or 13.12.
Domestic assets grow
The latest data shows that most of the increase in liquidity came from within the economy, as domestic assets grew sharply while foreign assets continued to weaken.
The CBN’s choice in November 2025 to keep the MPR at 27% reflects its caution in balancing liquidity control with the progress already made in reducing inflation.
Announcing the decision after the MPC’s 303rd meeting in Abuja, the CBN governor, Olayemi Cardoso said all twelve members were present, and the majority agreed to maintain the current monetary stance, arguing that earlier measures still needed time to take full effect.
Source: Twitter
The committee also revised the corridor around the policy rate to +50/-450 basis points and kept the Cash Reserve Ratio unchanged at 45 per cent for deposit money banks, 16% for merchant banks, and 75% for non-TSA public-sector funds.
It retained the liquidity ratio at 30%, noting in its communiqué that the goal was to preserve the gains made in stabilising inflation and to ensure that future policy decisions remain guided by data and clear evidence.
Money in circulation surged by 75.9%
Legit.ng earlier reported that the money supply in Nigeria has surged by 75.9% from N66.944 trillion in September 2023 to N117.783 trillion.
A breakdown of CBN data revealed that money supply in the first half of 2025 stood at N64.906 trillion in September 2023, compared to N117.250 trillion in the same period in 2025, marking an 80.6% increase.
Analysts warned that an increase in money supply without a corresponding increase in available goods may be bad for the economy.
Source: Legit.ng
