Nigeria’s liquidity is swelling as 2025 draws to a close. By December, the broad money supply (M3) rose to ₦124.4 trillion, up from ₦122.95 trillion in November.
Nigeria’s Liquidity Surges
This steady rise highlights growing cash flows in the domestic economy despite external pressures.
Domestic Vs Foreign Dynamics
Moreover, banks are actively channeling more funds into the local market, even as foreign reserves face strain.
Net foreign assets fell sharply from ₦37.38 trillion to ₦31.5 trillion, signalling pressure on external resources or rising foreign obligations.
At the same time, net domestic assets jumped by over ₦7 trillion, driven by increased government borrowing and a rise in bank lending.
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Similarly, the narrower money measure, M2, which tracks currency in circulation and demand deposits, climbed to ₦124.4 trillion.
This increase shows that households and businesses now have more money directly available for spending and investment.
Policy Moves And Economic Outlook
Earlier in 2025, the Central Bank cut the Monetary Policy Rate (MPR) to 27% to support growth amid easing inflation and improving stability in the foreign exchange market.
By November, the Monetary Policy Committee (MPC) decided to hold the rate steady, demonstrating a careful balance between encouraging economic activity and containing inflation.
Furthermore, the growth in domestic assets indicates that the banking system and government continue to inject liquidity into the economy.
Meanwhile, falling foreign assets underline persistent external pressures.
Consequently, investors, businesses, and policymakers closely monitor these trends because they show how Nigeria is managing liquidity to support recovery while guarding against inflation.
As 2026 begins, authorities face the delicate task of sustaining economic momentum while maintaining price stability.
