Broad money supply drops to N123.36trn in January 2026, says CBN
The Central Bank of Nigeria (CBN) has disclosed that Nigeria’s broad money supply (M3) dropped to N123.36 trillion in January 2026, compared to N124.4 trillion recorded in December 2025.
M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
The month-on-month decline indicates a slight moderation in overall liquidity conditions at the start of the year, although money supply remains significantly higher on a year-on-year basis.
Monetary aggregates indicate a mixed trend between domestic and external components of liquidity.
Broad money (M3) fell to N123.36 trillion in January 2026 from N124.4 trillion in December 2025.
Narrow money (M2), which includes currency in circulation and demand deposits, declined similarly, standing at N123.35 trillion from N124.4 trillion.
Net foreign assets (NFA) dropped sharply to N29.6 trillion from N31.5 trillion, reflecting reduced foreign currency holdings and possible pressures on reserves.
Net domestic assets (NDA) rose to N93.76 trillion from N92.9 trillion, signalling continued domestic credit expansion, including lending to government and private sector actors.
Despite the month-on-month contraction, M3 remains above January 2025 levels of approximately N111.11 trillion, reflecting sustained monetary growth over the year.
The movement in money supply comes against the backdrop of evolving monetary policy measures by the CBN.
In September 2025, the Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent, aiming to support economic activity amid easing inflationary pressures.
In November 2025, the MPC maintained the MPR at 27 per cent, adopting a cautious stance to balance price stability with growth support.
This could suggest the January contraction could be due to tighter liquidity management by the apex bank, seasonal adjustments, or more conservative lending behaviour by financial institutions.
The decline in net foreign assets may indicate ongoing adjustments in the external sector, including interventions in the foreign exchange market and reserve management strategies.
The trends highlight the complex dynamics of domestic liquidity, external reserve management, and credit provision in shaping Nigeria’s monetary conditions.
