Nigeria’s broad money supply climbed to ₦122.95 trillion in November 2025, reflecting a significant increase in liquidity within the economy despite ongoing tight monetary policies by the Central Bank of Nigeria (CBN).
Latest monetary data show that money supply expanded from ₦119.04 trillion in October, representing a month-on-month increase of ₦3.91 trillion. On a year-on-year basis, money supply also recorded a sharp rise compared with levels in November 2024, highlighting sustained growth in financial aggregates.
The expansion was driven by improvements in both net domestic assets, largely from increased credit to government and the private sector, and net foreign assets, supported by improved foreign exchange inflows. Narrow money (M1) and M2 also recorded increases, indicating higher currency in circulation and stronger transactional balances across the economy.
The rise in money supply comes as the CBN maintains a cautious policy stance aimed at containing inflationary pressures. The apex bank has kept the Monetary Policy Rate (MPR) at elevated levels, underscoring its commitment to price stability while balancing the need to support economic growth.
Analysts note that while increased liquidity can stimulate lending and economic activity, it also poses risks to inflation and exchange rate stability if not carefully managed. As a result, the CBN is expected to continue closely monitoring monetary conditions in the coming months.
Overall, the November expansion highlights the complex economic dynamics facing Nigeria as policymakers seek to balance growth, inflation control, and financial stability. Visit www.jocomms.com for more news.