The Central Bank of Nigeria (CBN) has reported a decline in the country’s broad money supply (M3), which fell by 1.6 percent to ₦117.78 trillion in September 2025, down from ₦119.69 trillion recorded in August.

According to the latest CBN data, the dip came shortly after the Monetary Policy Committee (MPC) decided to cut the Monetary Policy Rate (MPR) at its 302nd meeting — a move aimed at balancing economic growth and inflation control.

Despite the monthly decline, M3 still showed a 7.6 percent increase year-on-year, up from ₦109.41 trillion in September 2024. This indicates that while short-term liquidity tightened slightly, the broader money supply continued to expand moderately over the past year.

Foreign assets also recorded a marginal increase, rising to ₦41.66 trillion in September from ₦41.59 trillion in August — representing a 0.2 percent growth.

M3, which includes M2 (currency in circulation, demand deposits, and quasi-money) alongside other broad components, is shaped by movements in net domestic and foreign assets.

At the last MPC meeting, CBN Governor Olayemi Cardoso announced several key policy adjustments:

A 50 basis points cut in the MPR to 27.00 percent.

A revision of the Standing Facilities corridor to +250/-250 basis points.

An increase in the Cash Reserve Requirement (CRR) for commercial banks to 45 percent.

The introduction of a 75 percent CRR on non-TSA public sector deposits.

Retention of the Liquidity Ratio at 30 percent.

These measures reflect the apex bank’s cautious approach to maintaining financial stability while managing inflationary pressures in the Nigerian economy.