CBN Data Shows 1.6% Monthly Decline in M3, While Foreign Assets See Slight Uptick….
Nigeria’s broad money supply (M3) fell to N117.78 trillion in September 2025, representing a 1.6 percent drop from N119.69 trillion recorded in August, according to the latest data from the Central Bank of Nigeria (CBN).
The decline followed the CBN Monetary Policy Committee’s (MPC) decision to reduce the Monetary Policy Rate (MPR) during its 302nd meeting.
Despite the monthly decrease, M3 remained 7.6 percent higher than the N109.41 trillion recorded in September 2024, signaling a balance between short-term tightening pressures and longer-term liquidity expansion.
Foreign assets also edged slightly upward, rising 0.2 percent to N41.66 trillion from N41.59 trillion in August.
M3 measures the country’s money supply by combining M2, which includes currency, demand deposits, and quasi-money with other broad components, and is influenced by both net domestic and foreign assets.
At the conclusion of the recent MPC meeting, CBN Governor Olayemi Cardoso announced several key policy changes:
- Reduction of the MPR by 50 basis points to 27.00 percent
- Adjustment of the Standing Facilities corridor to +250/-250 basis points
- Increase of the Cash Reserve Requirement (CRR) for commercial banks to 45 percent
- Introduction of a 75 percent CRR on non-TSA public sector deposits
- Liquidity Ratio maintained at 30 percent
The latest figures reflect the CBN’s ongoing efforts to manage inflation, stabilize the naira, and balance liquidity in the financial system.
About the Author
