Nigeria’s Money Supply Rises to N124.4trn in December 2025

Nigeria’s money supply (M²) increased by 1.2 per cent month-on-month to N124.4 trillion in December 2025, up from N122.9 trillion in November, indicating a modest uptick in economic activity toward the end of the year.

This was disclosed by the Central Bank of Nigeria (CBN) in its Money and Credit Statistics for December 2025. The data showed that most components of money supply recorded growth during the period, with the exception of quasi money.

Narrow money (M¹) expanded by 4.05 per cent month-on-month to N42.14 trillion in December, compared to N40.5 trillion in November. Demand deposits also rose by 3.08 per cent to N36.7 trillion from N35.6 trillion recorded in the preceding month.

Currency outside banks increased sharply by 10.2 per cent month-on-month, reaching N5.4 trillion in December from N4.9 trillion in November.

In contrast, quasi money declined slightly by 0.18 per cent to N82.25 trillion in December, down from N82.4 trillion in November.

The growth in money supply was mirrored in increased banking sector credit to both the government and the private sector. According to the data, credit to the government surged by 29.5 per cent month-on-month to N34.2 trillion in December, from N26.35 trillion in November.

Credit to the private sector also recorded a rise, growing by 1.6 per cent to N75.8 trillion in December from N74.6 trillion in November.

As a result, net domestic credit climbed by 13.9 per cent month-on-month to N115.06 trillion in December, compared to N100.98 trillion in November.

The expansion in money supply was further reflected in currency in circulation, which rose by 9.6 per cent month-on-month to N5.7 trillion in December 2025, from N5.2 trillion in November. This suggests an increase in cash usage despite the growing adoption of electronic payments, expansionary monetary policy measures, and rising gross domestic product.

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