Nigeria’s Money Supply (M²) increased by 1.2 percent month-on-month (MoM) to N124.4 trillion in December 2025, up from N122.9 trillion in November, according to the latest Central Bank of Nigeria (CBN) Money and Credit Statistics released over the weekend. The data revealed that most components of the money supply recorded growth during the period, with the exception of Quasi-money.
Narrow money (M¹) rose by 4.05 percent MoM to N42.14 trillion in December from N40.5 trillion in November. Similarly, demand deposits increased by 3.08 percent MoM to N36.7 trillion from N35.6 trillion, while Currency Outside Banks (COB) surged by 10.2 percent MoM to N5.4 trillion from N4.9 trillion. In contrast, Quasi-money fell slightly by 0.18 percent MoM to N82.25 trillion from N82.4 trillion.
The rise in money supply was largely driven by increased credit to the government and private sector, which grew by 29.5 percent and 1.6 percent MoM, respectively. Credit to the government surged to N34.2 trillion in December from N26.35 trillion in November, while credit to the private sector rose to N75.8 trillion from N74.6 trillion. Consequently, net domestic credit climbed by 13.9 percent MoM to N115.06 trillion from N100.98 trillion.
The increase is also reflected in currency in circulation, which expanded by 9.6 percent MoM to N5.7 trillion from N5.2 trillion, indicating more cash in circulation despite growing adoption of electronic payments, expansionary monetary policies, and rising Gross Domestic Product (GDP). Analysts suggest that the trend highlights robust liquidity growth, which could influence inflationary pressures and economic activity in the coming months.
