Nigeria’s broad money supply surged to an all-time high of N110.98 trillion in the first month of 2025, data from the Central Bank of Nigeria (CBN) has shown.

The latest money and credit statistics data from the apex bank revealed that the broad monetary aggregate M3 recorded an increase of N2.02 trillion or 1.85 per cent compared to N108.96 trillion in November last year.

Broad money represents the total volume of money supply in the economy and is defined as narrow money plus savings and time deposits with banks including foreign denominated deposits.

From N93.7 trillion in January 2024, the money supply grew steadily in the previous year, ending the year at N108.9 trillion.

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Analysts believe the surging money supply which represents some economic liquidity amidst the rising inflation reflects the undercurrents of the economy with the naira exchange rate playing a dominant role.  

As the money supply grew, the currency in circulation also surged significantly month-on-month hitting N5.23 trillion in January 2025, an increase of 7.4 per cent as against N4.87 trillion recorded in November 2025.

At the same time, currency outside banks also surged marginally to N4.74 trillion up from N4.65 trillion recorded in November 2024.

The rising currency in circulation is coming despite the cash crunch, which the apex bank has managed to check.

The CBN sanctioned some deposit money banks (DMBs) recently over alleged hoarding of cash.

 Experts say the rise in money supply and currency in circulation was due to recent expansionary approaches which the fiscal and monetary authorities adopted.

Ayokunle Olubunmi of Augusto, speaking with our correspondent, said the January data is a continuation of the 2024 trajectory.

 “What is going on is the impact of the expansionary fiscal policy that is being adopted by the government.

 You would see that over the last two years, the amount that is being shared by the three tiers of government has actually increased. This is also supported by devaluation. You know that we are actually earning in naira, but the primary revenue is actually in dollars. An increase in crude oil production has also supported that.”

 As the monetary policy committee (MPC) of the CBN meets, he said he expects that the rates would be left untouched to sustain the recent rebasing of Nigeria’s Consumer Price Index (CPI) which maximally brought down inflation to 24.4 per cent from 39.84.

“We should not also forget that the CPI has rebased; it doesn’t mean the inflationary pressure has reduced.  The best for them is to just maintain the status quo,” he said.