Nigeria's broad money supply climbed to N133.25 trillion in June 2026, a month-on-month increase of N4.04 trillion from N129.21 trillion in May, according to fresh data released by the Central Bank of Nigeria (CBN) on Wednesday, July 22, 2026. The rise occurred despite the CBN's decision to retain the Monetary Policy Rate (MPR) at 26.5%, underscoring the challenge of balancing liquidity control with economic growth.
Broad Money Supply Reaches N133.25 Trillion in June
Broad money, which encompasses cash, demand deposits, savings, time deposits, and other liquid assets, expanded by 3.11% month-on-month. This growth indicates that households and businesses held more funds for spending and investment in June compared to the previous month. The CBN's tight monetary stance, aimed at curbing inflation, has not prevented liquidity from rising.
Quasi-Money and Domestic Assets Drive Growth
The increase in broad money was primarily driven by a surge in quasi-money—comprising savings and fixed-term deposits—which rose to N88.54 trillion in June from N84.58 trillion in May. Demand deposits also edged up to N39.78 trillion from N39.43 trillion over the same period. Net domestic assets grew by 4.37%, reaching N106.73 trillion from N102.26 trillion, further fueling the liquidity expansion.
Cash Outside Banking System Declines
Cash held outside the banking system decreased to N4.92 trillion in June, down from N5.19 trillion in May. This decline suggests that more cash flowed into formal banking channels, a positive sign for financial intermediation. Meanwhile, net foreign assets fell by 1.56% to N26.53 trillion from N26.95 trillion, reflecting a slight contraction in external reserves or foreign currency holdings.
Inflation Concerns Persist Despite Rate Hold
The CBN's Monetary Policy Committee (MPC) voted to keep the MPR at 26.5% during its latest meeting, holding all other monetary policy parameters unchanged. The committee maintained that a tight policy stance remains necessary to support disinflation and preserve macroeconomic stability. However, economists have warned that sustained growth in money supply could complicate the fight against inflation by increasing the amount of money available for spending across the economy. The latest liquidity figures highlight the delicate balance the CBN must strike between stimulating economic activity and controlling price pressures.
