Nigeria’s money supply declined slightly to N123.15 trillion in February 2026, according to newly released data from the Central Bank of Nigeria (CBN).
The figure represents a marginal drop from N123.36 trillion recorded in January 2026, indicating a mild contraction in liquidity within the financial system on a month-on-month basis.
Despite the monthly dip, money supply remains significantly higher compared to N110.71 trillion in February 2025, reflecting sustained year-on-year expansion in overall liquidity.
Broad money supply (M3) which measures total money in the economy including cash, deposits, and foreign currency holdings showed mixed underlying movements.
Narrow money (M2) also declined slightly to N123.14 trillion, suggesting tighter short-term liquidity conditions.
A breakdown of key components shows:Net foreign assets fell to N28.41 trillion from N29.61 trillion, indicating reduced external liquidity. Net domestic assets increased to N94.74 trillion from N93.76 trillion, driven by stronger domestic credit activity.
The shift reflects a rebalancing of liquidity sources, with domestic credit offsetting declines in foreign inflows.The marginal decline aligns with the CBN’s continued tight monetary stance aimed at controlling inflation, stabilising the naira, and managing excess liquidity in the economy.
Analysts interpret the movement as a sign of short-term liquidity tightening rather than economic contraction, with monetary authorities maintaining a balance between price stability and economic growth.
Source: Nairametrics
