Money supply hits ₦146.6tn in September after CBN rate cut
- Nigeria's broad money supply rose to ₦146.6tn in September, up ₦7.51tn or 5.4 per cent from August, CBN data shows.
- The rise followed the CBN's September cut of its benchmark rate to 23 per cent from 26.5 per cent.
- Analysts say it is unclear how much of the extra cash will reach lending, spending and prices.
Nigeria's broad money supply climbed to ₦146.6tn in September, up ₦7.51tn from ₦139.09tn in August, according to data published by the Central Bank of Nigeria (CBN).
That is a monthly rise of about 5.4 per cent. Since January, when the figure stood at ₦123.95tn, money supply has grown by ₦22.65tn, or 18.3 per cent.
Broad money, also called M3, covers currency outside banks, demand deposits, savings and time deposits, and foreign currency deposits. It is a measure of how much money is sitting in the financial system, not proof that all of it is being spent.
The September jump came after the CBN's Monetary Policy Committee (MPC) cut the Monetary Policy Rate (MPR) — the benchmark interest rate — by 350 basis points to 23 per cent from 26.5 per cent. Both outlets report it was the largest cut since December 2006.
The committee also adjusted the corridor around the rate to plus 50 basis points and minus 300 basis points. It kept the Cash Reserve Requirement (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks, and retained the 75 per cent requirement on non-Treasury Single Account public-sector deposits.
Why it matters for ordinary Nigerians
More money in the system can mean easier access to loans for businesses and households — but it can also feed inflation if it flows quickly into spending. The CBN data alone does not show which way it will go.
Narrow money, which covers currency in circulation and highly liquid deposits, rose from ₦43.11tn in August to ₦44.05tn in September. Cash held outside banks edged up from ₦4.87tn to ₦4.92tn.
The monthly path shows steady growth through the year: ₦125.19tn in April, ₦129.54tn in May, ₦133.27tn in June and ₦139.1tn in July. It dipped slightly to ₦139.09tn in August before the September surge.
The September cut followed a long stretch of tight policy. At its July meeting, the MPC held the rate at 26.5 per cent. In September 2025 it had cut by 50 basis points to 27 per cent, then left it there in November.
What happens next
Attention now turns to whether the extra liquidity shows up in bank lending, consumer spending and inflation in the coming months. The CBN has not said what it will do at its next MPC meeting.
