Money supply (M3) in Nigeria’s economy surged to an all-time high of N119.10 trillion in April 2025, even as the Central Bank of Nigeria (CBN) maintained its tight monetary policy stance aimed at curbing inflation and stabilising the economy.
Despite the CBN’s sustained efforts to tighten liquidity, the latest figures from the apex bank reflect a year-on-year growth of 22.8 percent, up from N96.97 trillion recorded in April 2024. On a month-on-month basis, money supply expanded by 4.3 percent from N114.22 trillion in March 2025.
Money supply M3, considered the broadest measure of money in circulation, encompasses both highly liquid assets such as cash and demand deposits, as well as less liquid components including savings accounts and large time deposits.
The same report from the CBN also shows a contraction in credit to the government. It declined by 8.9 percent month-on-month to N23.55 trillion in April 2025, down from N25.85 trillion in March. However, year-on-year, credit to the government still rose by 17.9 percent compared to N19.97 trillion in April 2024.
Currency outside banks witnessed both monthly and annual declines. It dropped by 26.94 percent year-on-year to N4.57 trillion in April 2025, compared to N3.60 trillion in the same month of 2024. Month-on-month, it recorded a slight dip of 0.4 percent from N4.59 trillion in March.
In contrast, currency in circulation showed a significant annual increase. It rose by 27.8 percent to N5.01 trillion in April 2025, up from N3.92 trillion in April 2024, representing a N1.09 trillion jump. However, on a monthly basis, it edged down marginally by 0.2 percent from N5.00 trillion in March.
Meanwhile, credit to the private sector continued its upward trajectory, reaching N77.90 trillion in April 2025. This reflects a 6.8 percent year-on-year increase from N72.91 trillion in April 2024. Compared to the previous month, credit to the private sector rose by 2.15 percent from N76.26 trillion.
