Nigeria’s broad money supply (M2) increased by 17.3% year-on-year (YoY) to N110.3 trillion in February 2025, up from N93.97 trillion in the same period of 2024, according to the latest Money and Credit Statistics released by the Central Bank of Nigeria (CBN). The report also revealed a contrasting trend in credit to the economy, which declined by 13.4% YoY to N99.4 trillion in February 2025, primarily due to reductions in credit to both the government and the private sector.
The data showed that quasi-money, which includes savings and time deposits, increased by 14% YoY to N72.7 trillion. Demand deposits saw a 22.8% YoY rise, reaching N33.05 trillion, while currency outside banks grew by 32% YoY to N4.51 trillion. Narrow money (M1) also expanded by 21.7% YoY to N36.9 trillion.
Despite the increase in money supply, credit to the government fell by 21.8% YoY to N26.5 trillion from N33.92 trillion in February 2024. However, on a month-on-month (MoM) basis, it rose 8% from N24.5 trillion in January 2025. Similarly, credit to the private sector declined 7.4% YoY to N74.9 trillion, down from N80.9 trillion in February 2024, and also dropped 1.6% MoM from January 2025 levels.
The overall decline in credit to the economy highlights a tightening of lending conditions despite the surge in money supply, with government borrowing remaining a key driver of liquidity expansion.
