Nigeria’s Money Supply Hits N114tn as Cash Use Soars, Inflation Persists 

• Nigeria’s money supply surged to N114.22tn in March 2025, a 24% rise from March 2024, despite the CBN raising the Cash Reserve Ratio to a record 50%.

• The increase was mainly driven by a 38.9% jump in net foreign assets, even as net domestic assets dropped by 11.7%.

• Cash circulation outside banks hit N4.6tn, showing continued public reliance on physical currency, while inflation climbed to 24.23% in March.

Nigeria’s broad money supply rose to a record N114.22tn in March 2025, defying the Central Bank of Nigeria’s (CBN) aggressive monetary tightening which included raising the Cash Reserve Ratio (CRR) to an unprecedented 50%.

CBN data shows the 24% year-on-year increase was driven by a 38.9% spike in net foreign assets, while net domestic assets dropped by 11.7%, highlighting external influences overpowering domestic liquidity control. On a monthly basis, M3 rose 3.2% from N110.71tn in February.

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Despite efforts to promote financial inclusion, currency outside banks hit N4.6tn—over 91% of total cash in circulation—indicating a strong preference for physical naira.

“The Monetary Policy Committee’s data-dependent approach has served Nigeria well,” the IMF noted, recommending a disinflation path to anchor expectations amid rising inflation and monetary challenges.