Nigeria’s broad money supply (M3) rose to N129.21 trillion in May 2026, reflecting continued expansion in liquidity within the financial system despite the Central Bank of Nigeria’s (CBN) sustained monetary tightening measures aimed at curbing inflation.
Latest monetary data released by the apex bank showed that broad money supply increased from N124.99 trillion recorded in April to N129.21 trillion in May, representing an increase of N4.22 trillion within one month. The latest figure also marks the highest level recorded in the country’s monetary history.
Broad money supply, also known as M3, measures the total amount of money circulating in the economy, including currency in circulation, demand deposits, savings deposits, time deposits and foreign currency holdings. Economists often use the indicator to assess liquidity conditions and inflationary pressures in the economy.
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The increase in money supply comes at a time when the CBN has maintained an aggressive monetary tightening stance, including high interest rates and frequent Open Market Operations (OMO) auctions, to mop up excess liquidity from the banking system.
Data from the CBN further showed that narrow money supply (M2), which comprises currency in circulation and short-term deposits, also recorded significant growth during the period, underscoring sustained liquidity expansion across the financial system.
Analysts say the continued rise in money supply could pose challenges to the apex bank’s efforts to tame inflation, as excess liquidity in the economy often fuels consumer demand and exerts upward pressure on prices.
However, monetary authorities have maintained that their policy measures are designed to balance price stability with economic growth, while preserving exchange rate stability and strengthening investor confidence.
The latest increase in money supply comes amid ongoing concerns over inflationary pressures, exchange rate volatility and the need to sustain economic recovery in Africa’s largest economy.
