Central Bank of Nigeria (CBN) bills held by money-holding sectors surged to N5.60 trillion in September 2026 from just N9.68 billion in August, accounting for 74.4 per cent of the monthly increase in Nigeria’s broad money supply.
CBN monetary statistics show that broad money supply, measured by M3, rose by N7.51 trillion to N146.60 trillion during the month, while the sharp increase in CBN bills contributed approximately N5.59 trillion to the expansion.
The figures highlight a significant change in the composition of the country’s monetary aggregates, with CBN bills accounting for most of the reported monthly growth.
However, the increase in broad money supply does not necessarily mean that an equivalent amount of fresh cash entered the economy. CBN bills are interest-bearing instruments used in liquidity management, and their inclusion in M3 affects the headline measure.
The narrower M2 measure, which excludes CBN bills, rose by a more modest 1.38 per cent to N141 trillion in September, from N139.08 trillion in August. On a year-on-year basis, M2 increased by 19.72 per cent from N117.77 trillion recorded in September 2025.
Within M2, quasi-money increased by 1.03 per cent to N96.95 trillion, while narrow money rose by 2.17 per cent to N44.05 trillion.
Currency held outside banks also increased by one per cent to N4.92 trillion, from N4.87 trillion in August. Demand deposits rose by 2.32 per cent to N39.12 trillion.
The monetary data further showed that net domestic credit increased by 4.96 per cent to N123.34 trillion in September, from N117.51 trillion in August.
Government credit rose by N6.36 trillion, or 19.26 per cent, to N39.40 trillion, while private-sector credit declined by 0.64 per cent to N83.93 trillion.
The contrasting movements suggest that the expansion in reported money supply was driven by both changes in monetary instruments and increased credit to government, even as lending to the private sector recorded a monthly decline.
The distinction between M3 and M2 is therefore important in assessing whether headline monetary growth translates into additional liquidity available for spending, savings and business financing.
