- Nigeria’s broad money supply soared to N119.11 trillion in April 2025
- The increase was driven by a surge in net foreign assets, which increased to N47.76 trillion in April 2025
- Both the money supply (M2) and narrow money (M1) mirrored the upward trend of the broad money supply (M3)
The latest Money and Credit Statistics from the Central Bank of Nigeria (CBN) shows that Nigeria’s broad money supply (M3) soared to N119.11 trillion in April 2025, driven by a surge in foreign assets.
The April increase in M3 represents a 22.9 per cent increase year-on-year from the N96.97 trillion recorded in April 2024 and a 4.3 per cent month-on-month rise from N114.22 trillion in March 2025.
The increase in liquidity in the economy follows the CBN’s recent monetary tightening stance to curb excess liquidity and inflation, which eased to 23.71 per cent in April.
This saw the CBN retain the Monetary Policy Rate (MPR) at 27.50 per cent for the second consecutive time after its May 2025 Monetary Policy Committee (MPC) meeting.
Increase in M3 driven by surge in foreign assets
The increase in M3, which encompasses narrow money (M1), quasi money, and longer-term deposits, was driven by increased net foreign assets (NFA) and net domestic assets (NDA).
Net foreign assets increased to N47.76 trillion in April 2025, a 66.3 per cent year-on-year increase from N28.73 trillion in April 2024.
The NFA recorded in April 2025 rose by 5.7 per cent month-on-month from the N45.17 trillion recorded in March 2025.
The foreign exchange (FX) inflows into the country often come from crude oil sales, multilateral funding, or diaspora remittances.
There was also an uptick in Net Domestic Assets (NDA), which rose to N71.34 trillion in April 2025.
The increase represents a 4.5 per cent year-on-year increase from the N68.25 trillion recorded in April 2024 and a 3.3 per cent month-on-month growth from N69.05 trillion in March 2025.
M2 and M1 mirror M3 upward trend
According to the CBN’s data, money supply (M2), which covers savings and demand deposits, followed the upward trend of M3.
M2 rose to N119.08 trillion in April 2025, representing a 22.8 per cent increase year-on-year from N96.96 trillion in April 2024 and a 4.3 per cent month-on-month rise from N114.20 trillion in March 2025.
Similarly, Narrow money (M1), which comprises currency in circulation and demand deposits, rose to N41.01 trillion in April 2025.
The April 2025 M1 figures showed a 21.3 per cent increase year-on-year from the N33.82 trillion recorded in April 2024 and a 6.4 per cent month-on-month growth from N38.55 trillion in March 2025.
The increase in M1 often reflects the increase in consumer and transactional liquidity, which can be a result of heightened economic activity, informal sector cash usage, or seasonal expenditures.
M1 increase is also seen during heightened inflation, as consumers tend to keep less money in savings and more in easily accessible funds, especially cash.
Money supply increases to N114.22 trillion in March 2025
Meanwhile, TheRadar earlier reported that data from the Central Bank of Nigeria showed that Nigeria’s broad money supply (M3) rose to N114.22 trillion in March 2025, a 24 per cent increase year-on-year from the N92.19 trillion recorded in March 2024.
The CBN data also showed that money supply (M3), which measures the total amount of money in an economy, including net foreign assets (NFA) and net domestic assets (NDA), increased by 3.2 per cent on a month-on-month basis from N110.71 trillion in February.
