Nigeria’s money supply (M²) rose by 1.2 percent month-on-month (MoM) to N124.4 trillion in December 2025, up from N122.9 trillion in November, according to the Central Bank of Nigeria (CBN) Money and Credit Statistics released over the weekend.
The increase was driven by growth in narrow money (M¹), demand deposits, and currency in circulation, while quasi-money recorded a slight decline. Narrow money expanded by 4.05 percent to N42.14 trillion from N40.5 trillion, and demand deposits increased by 3.08 percent to N36.7 trillion from N35.6 trillion. Currency outside banks (COB) rose 10.2 percent to N5.4 trillion from N4.9 trillion. Quasi-money, however, fell 0.18 percent to N82.25 trillion from N82.4 trillion.
The rise in money supply reflected in banks’ lending to both the government and the private sector. Credit to the government surged 29.5 percent MoM to N34.2 trillion from N26.35 trillion, while private sector credit grew 1.6 percent to N75.8 trillion from N74.6 trillion. Overall, net domestic credit increased 13.9 percent MoM to N115.06 trillion from N100.98 trillion.
Currency in circulation also climbed by 9.6 percent to N5.7 trillion from N5.2 trillion, signaling higher cash availability despite growing electronic payments, an expansionary monetary policy, and increased GDP.
