Nigeria’s financial system expanded in April 2026 as liquidity pressures continued across key monetary indicators.
Money Supply Growth Trend
Broad money supply (M3) rose to ₦124.99 trillion, showing sustained growth in liquidity conditions.
This followed a rise from ₦123.12 trillion in February 2026, adding ₦1.87 trillion in two months.
However, March 2026 data was not released, creating a gap in monthly reporting continuity.
Despite tighter monetary policy, liquidity still expanded across Nigeria’s banking and financial system.
Broad money includes cash, deposits, and foreign holdings used for spending and investment activities.
Year-On-Year Expansion Pattern
Year-on-year, money supply rose from ₦119.22 trillion in April 2025 to ₦124.99 trillion.
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Narrow money (M2) also increased to ₦124.98 trillion in April 2026 from ₦123.11 trillion.
Net foreign assets fell to ₦24.01 trillion from ₦25.57 trillion over the same period.
Net domestic assets rose sharply to ₦100.97 trillion from ₦97.55 trillion within the period.
This shows domestic liquidity became the main driver of money supply growth in Nigeria.
Monetary Policy Stance And inflation
The Central Bank of Nigeria continued tightening policy while inflation concerns remained elevated nationwide.
At its 304th MPC meeting, the CBN cut the Monetary Policy Rate to 26.5%.
It reduced the rate from 27% while maintaining a cautious stance on inflation control.
The Cash Reserve Ratio stayed at 45% for banks and 16% for merchant banks.
Liquidity Ratio remained at 30%, with corridor settings unchanged around policy rate.
Analysts say the policy mix balances inflation control with fragile economic growth support.
Inflation pressures remain strong due to global commodity swings and domestic supply challenges.
Nigeria’s foreign exchange reserves also improved, rising by $551 million in May 2026.
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