Nigeria's M3 rises to N129.2tn in May, CBN keeps rate at 26.5%
Nigeria's broad money supply (M3) rose to N129.21 trillion in May 2026, up from N124.99 trillion in April—a month-on-month increase of 3.38% and a year-on-year rise from N119.20 trillion in May 2025. Narrow money (M2) reached N129.20 trillion, quasi-money grew to N84.58 trillion, net foreign assets rose to N26.95 trillion and net domestic assets to N102.26 trillion, even as the CBN held its benchmark rate at 26.50% after the May 19‑20 MPC meeting.
This liquidity expansion occurs despite the central bank’s tight monetary stance, signaling that credit and foreign‑asset growth are driving money supply higher. Such dynamics can fuel inflationary pressure, affect foreign‑exchange stability, and influence borrowing costs for businesses and households.
The CBN previously cut the MPR by 50 basis points to 27% in September 2025 and held it steady in November. Policymakers will watch these money‑supply trends as they seek to balance growth with inflation control. Individuals and firms might consider inflation‑hedging strategies, review loan terms, or explore fixed‑income options while the liquidity environment remains accommodative.