Nigeria’s broad money supply rose by N4.04tn in June despite the Central Bank of Nigeria maintaining its benchmark interest rate at 26.5 per cent

Nigeria’s money supply surge gathered pace in June 2026 as broad money climbed to N133.25tn from N129.21tn in May, highlighting a striking expansion in financial liquidity even as the Central Bank of Nigeria maintained a tight monetary policy stance.

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Data released by the CBN on Wednesday showed that broad money increased by N4.04tn month-on-month, representing a 3.11 per cent rise, as domestic assets and quasi-money expanded during the period.

The increase presents a delicate balancing act for the apex bank, which has kept its Monetary Policy Rate at 26.5 per cent in an effort to sustain the disinflation process and preserve macroeconomic stability.

Broad money is a wide measure of liquidity within an economy. It captures physical currency and highly liquid deposits, as well as less liquid financial assets such as savings and time deposits that can relatively easily be converted into cash.

One of the main drivers of the June increase was quasi-money, which rose to N88.54tn from N84.58tn in May.

Quasi-money largely comprises savings and time deposits, suggesting that the banking system held a larger pool of funds that could potentially support household spending, business activity and investment.

Demand deposits also edged upwards, reaching N39.78tn from N39.43tn over the same period.

At the same time, currency outside the banking system fell to N4.92tn from N5.19tn.

The decline indicates that less cash was held outside formal financial institutions, potentially pointing to a modest shift towards deposits and other banking channels.

The composition of the increase also revealed a notable divergence between domestic and foreign assets.

Net domestic assets rose by 4.37 per cent, moving from N102.26tn in May to N106.73tn in June. Net foreign assets, however, declined by 1.56 per cent, falling from N26.95tn to N26.53tn.

The latest figures come at a sensitive point for Nigeria’s monetary authorities, which are attempting to manage liquidity without undermining the progress made in bringing inflation under control.

While a growing money supply can support economic activity by improving access to funds, sustained liquidity expansion can also create additional inflationary pressure if it outpaces the growth of goods and services available in the economy.

That tension places the CBN in a challenging position.

The apex bank has maintained a restrictive policy framework while monitoring inflation, exchange rate conditions and broader economic stability.

The latest money supply data also follows the CBN’s decision at its Monetary Policy Committee meeting this week to retain the benchmark Monetary Policy Rate at 26.5 per cent.

The committee left other key monetary policy parameters unchanged, signalling its preference to maintain a restrictive stance as it seeks to consolidate the ongoing disinflation process.

The contrasting trends of rising liquidity and a high policy rate underscore the complexity of Nigeria’s current economic environment.

Although the benchmark rate remains elevated, the expansion in broad money suggests that monetary conditions are being shaped by factors beyond the policy rate alone.

For businesses and households, the increase in liquidity could provide greater access to funds and potentially support economic activity.

For policymakers, however, the surge presents a more delicate challenge, as excess liquidity can complicate efforts to keep inflationary pressures firmly under control.

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The figures will therefore be closely watched in the months ahead as the CBN seeks to maintain its powerful grip on liquidity while supporting a broader return to price stability and sustainable economic growth.