In November 2025, Nigeria’s money supply rose again, even as the Central Bank maintained a tight policy stance.
According to CBN data, broad money supply (M3) climbed to ₦122.95 trillion from ₦119.04 trillion in October.
Liquidity Keeps Expanding
As a result, the ₦3.91 trillion increase shows that liquidity stayed strong despite high interest rates.
Meanwhile, on a yearly basis, M3 rose sharply from ₦108.97 trillion in November 2024.
Notably, growth in domestic and foreign assets powered the overall expansion.
Domestic And Foreign Drives Money Supply
First, net domestic assets rose to ₦85.57 trillion from ₦84.23 trillion, signalling stronger local credit growth.
At the same time, banks expanded lending to both government and the private sector.
Read Also: Naira Ends 2025 Stronger At ₦1,429/$
Meanwhile, net foreign assets climbed to ₦37.38 trillion from ₦34.80 trillion in October.
Compared with last year, foreign assets more than doubled from ₦17.35 trillion.
Consequently, stronger foreign inflows and higher reserves strengthened Nigeria’s external position.
In addition, other money indicators moved in the same direction in November.
For instance, broad money (M2) increased to ₦122.94 trillion from ₦119.03 trillion.
Similarly, narrow money (M1) climbed to ₦40.53 trillion from ₦39.35 trillion.
Together, these figures point to higher transaction activity across the economy.
Policy Stance Holds Firm
Against this backdrop, recent policy decisions shaped liquidity conditions.
In September, the MPC cut the policy rate by 50 basis points to 27%.
At that stage, easing inflation and improved foreign exchange conditions guided the move.
However, in November, the MPC kept rates steady as liquidity continued to expand.
Typically, growing domestic assets signal higher government borrowing and stronger private sector credit.
Likewise, rising foreign assets reflect improved external sector performance.
Together, these trends support economic growth but also heighten excess liquidity risks.
By holding rates firm, the CBN aims to protect inflation control and exchange rate stability.
