By George OPARA
Nigeria’s broad money supply (M3) increased to N129.21 trillion in May 2026, reflecting continued expansion in liquidity across the economy amid the Central Bank of Nigeria’s decision to maintain a tight monetary policy stance.
Spear News Nigeria sighted the latest data released by the Central Bank of Nigeria (CBN), which showed that broad money supply rose from N124.99 trillion recorded in April 2026, representing a month-on-month increase of 3.38 percent.
On a year-on-year basis, M3 expanded from N119.20 trillion in May 2025, highlighting sustained growth in money stock over the past 12 months.
Also, broad money, known as M3, comprises currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
The advance in money supply was largely driven by growth in quasi-money, net foreign assets, and net domestic assets during the period.
Quasi-money, which includes savings and time deposits, rose to N84.58 trillion in May from N81.22 trillion in April.
Narrow money also increased to N129.20 trillion from N124.98 trillion during the same period, while CBN bills held by money-holding sectors edged slightly higher to N9.66 billion.
However, analysis of the data showed that both external and domestic asset positions contributed to the expansion in liquidity.
Net foreign assets rose significantly to N26.95 trillion in May from N24.01 trillion in April, indicating stronger external asset accumulation within the banking system.
In a related development, Spear News Nigeria gathered that net domestic assets increased to N102.26 trillion from N100.97 trillion, reflecting continued growth in credit and other domestic financial holdings.
The current figures come despite the CBN’s decision to maintain its benchmark Monetary Policy Rate at 26.50 percent as part of efforts to curb inflation and preserve macroeconomic stability.
As the apex bank has retained a tight policy stance, monetary aggregates have continued to expand, suggesting that liquidity conditions remain relatively accommodative.
This trend is expected to remain a key focus for policymakers as they seek to balance economic growth with inflation impact, while the exchange rate remains relatively constant over a period of time.
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