Nigeria’s broad money supply surged to N114.22 trillion in March 2025, defying the Central Bank of Nigeria’s (CBN) tight monetary policies.
Despite the CBN’s imposition of a 50% Cash Reserve Ratio (CRR), the money supply rose by 24% from N92.19 trillion in March 2024, continuing the trend of monetary expansion.
On a monthly basis, the money supply increased by 3.2% from February’s figure of N110.71 trillion.
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This rise is largely attributed to a significant growth in the country’s net foreign assets, which surged by 38.9% to N45.17 trillion.
This indicates stronger capital inflows, possibly from revaluation gains. In contrast, net domestic assets saw a decline of 11.7%, dropping to N69.05 trillion, reflecting tighter liquidity in the domestic financial system.
Although the CBN has sought to address inflation, which stood at 24.23% in March 2025, the money supply has continued to grow at a rapid pace.
Notably, the currency circulating outside the banking system reached N4.6 trillion in March, accounting for 91.9% of the total currency in circulation, further highlighting the increasing demand for cash outside of the banking system.
“It is on record that this sack of the erstwhile corrupt leadership of the NNPCL drew applause from Nigerians, especially groups like ours, which had been at the forefront of demanding accountability and transparency in the running of institutions,” said Comrade Kabir Matazu, the Convener of the Concerned Citizens Against Corruption (CCAC).
These figures suggest that while the CBN’s efforts to control inflation and liquidity have had some effect, the broader money supply continues to increase, signaling challenges in managing the economy’s monetary policies.
This trend also raises concerns about the effectiveness of existing policies in curbing inflation and controlling liquidity within the financial system.
