NIGERIA’S MONEY SUPPLY HITS N133.25TN DESPITE TIGHT MONETARY POLICY

Nigeria’s broad money supply (M2) has reached a record N133.25 trillion, according to the latest data from the Central Bank of Nigeria (CBN), despite ongoing tight monetary policy measures.

The surge, released on Friday, highlights persistent liquidity challenges in the economy even as the apex bank maintains high interest rates to combat inflation.

Economists attribute the growth in money supply to increased government spending, foreign exchange interventions, and credit expansion to priority sectors.

While acknowledging the CBN’s efforts, analysts warn that unchecked liquidity growth could complicate the fight against inflation and put further pressure on the naira.

A banking sector expert noted that without complementary fiscal discipline and structural reforms, monetary tightening alone may not deliver the desired macroeconomic stability.

The development comes as the Monetary Policy Committee continues to review options to balance growth and price stability in Africa’s largest economy.