Money supply jumps to N122.95trn in November 2025 as private sector credit rises to N74.63tn

Nigeria’s broad money supply (M3) surged to N122.95 trillion in November 2025 from N119.04 trillion in October, signalling a continued expansion in system liquidity despite the Central Bank of Nigeria’s (CBN) broadly tight monetary stance just as Private sector credit rose to N74.63 trillion in November 2025, signalling an early rebound in lending activity following the Central Bank of Nigeria’s (CBN) September policy rate cut.

This is according to the latest data released by the CBN, which shows a marginal increase from N74.41 trillion recorded in October. The data suggest that while tight monetary conditions constrained lending for most of the year, easing policy signals are beginning to stabilise credit flows to businesses and households.

CBN data shows that liquidity conditions in the banking system remain accommodative even as the apex bank maintains elevated policy rates. The increase reflects stronger domestic credit growth and improved foreign asset positions, raising questions about how the CBN manages liquidity without undermining inflation and exchange rate stability.

The CBN data show that broad money supply (M3) rose by N3.91 trillion month-on-month to N122.95 trillion in November 2025.
On a year-on-year basis, M3 expanded significantly from N108.97 trillion recorded in November 2024.

The growth in money supply was driven by increases in both net domestic assets (NDA) and net foreign assets (NFA). NDA rose to N85.57 trillion in November from N84.23 trillion in October, reflecting higher banking sector claims on government and the private sector.

Net foreign assets also improved sharply, increasing to N37.38 trillion in November from N34.80 trillion in October. Compared with November 2024, NFA more than doubled from N17.35 trillion, pointing to stronger foreign exchange inflows and improved external buffers.

Other monetary aggregates followed a similar trend. Broad money measured by M2 increased to N122.94 trillion in November from N119.03 trillion in October, while narrow money (M1) rose to N40.53 trillion from N39.35 trillion, indicating higher transactional balances in the economy.
Context behind the numbers 

The expansion in money supply comes against the backdrop of recent monetary policy adjustments by the CBN. The decision was taken amid easing inflationary pressures and relatively improved foreign exchange conditions.

At the same time, the sharp improvement in NFA suggests stronger external sector performance, supported by higher foreign inflows and better reserve positions.

While this combination supports economic activity, it also increases the risk of excess liquidity if not carefully managed. The simultaneous rise in domestic and foreign assets indicates that liquidity growth in Nigeria is being driven by both internal credit expansion and improved external conditions.

While this supports economic recovery and lending, it complicates the CBN’s fight against inflation and exchange rate volatility.
By maintaining a tight policy stance in November, the CBN appears to be signalling its intention to prevent rapid money supply growth from undermining recent disinflation gains.

CBN figures show that credit to Nigeria’s private sector increased month-on month by N220 billion to N74.63 trillion in November 2025. However, on a year-on-year basis, private sector credit declined from N75.96 trillion in November 2024, demonstrating the lingering effects of restrictive monetary policy for much of 2025.

The November rebound marks a turning point after a prolonged decline in private sector credit earlier in the year. CBN data show that credit fell from N77.38 trillion in January to a low of N72.53 trillion in September, reflecting the impact of elevated interest rates, tighter liquidity conditions, and cautious bank lending.