Nigeria’s broad money supply surged to an all-time high of N110.98 trillion in January 2025, according to the latest data from the Central Bank of Nigeria (CBN).
This marks a 1.85% increase from N108.96 trillion recorded in November 2024, reflecting continued economic liquidity amid rising inflation.
Currency in circulation also rose 7.4% month-on-month, reaching N5.23 trillion in January, despite efforts by the CBN to manage cash availability.
Experts attribute the surge to expansionary fiscal policies, increased government revenue from crude oil, and the naira’s devaluation.
Analyst Ayokunle Olubunmi noted that rising money supply aligns with higher government allocations over the past two years. He expects the CBN’s Monetary Policy Committee (MPC) to maintain current rates to sustain inflation control, following Nigeria’s rebased Consumer Price Index (CPI), which lowered inflation from 39.84% to 24.4%.
