Nigeria’s Money Supply Hits N118.99 Trillion in May 2025…Nigeria’s money supply (M²) has reached N118.99 trillion in May 2025, according to recent data. This figure represents a slight decline of 0.23% from N119.27 trillion in April 2025.
The decline in money supply is the third decrease recorded this year, and it follows mixed performance in its components.
The money supply trend has been influenced by various factors, including changes in quasi-money, narrow money, and demand deposits.
Quasi-money, which includes savings and time deposits, rose by 0.42% to N78.6 trillion in May from N78.27 trillion in April.
This increase in quasi-money suggests that Nigerians are saving more, which could be a positive sign for the economy.
On the other hand, narrow money (M¹) declined by 1.4% to N40.4 trillion in May from N40.99 trillion in April.
Narrow money includes currency in circulation and demand deposits, and the decline in this component suggests that there may be a decrease in economic activity.
Demand deposits, which are a key component of narrow money, fell by 1.89% to N35.74 trillion in May from N36.43 trillion in April.
The Central Bank of Nigeria (CBN) has been working to manage liquidity and stabilize the economy.
The CBN’s monetary policy efforts have led to a moderation in broad money supply growth, averaging 1.3% month-on-month and 20.3% year-on-year in 2025.
The CBN’s efforts to manage liquidity have been aimed at promoting economic stability and reducing inflationary pressures.
The decline in money supply could have implications for the economy.
A decrease in money supply can lead to a reduction in economic activity, as there is less money available for lending and spending.
However, the CBN’s efforts to manage liquidity and stabilize the economy may help to mitigate the impact of the decline in money supply.
In conclusion, Nigeria’s money supply has reached N118.99 trillion in May 2025, representing a slight decline from the previous month.
The decline in money supply follows mixed performance in its components, including quasi-money, narrow money, and demand deposits.
The CBN’s efforts to manage liquidity and stabilize the economy may help to promote economic stability and reduce inflationary pressures.
The money supply trend will be closely watched in the coming months, as it can have significant implications for the economy.
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A sustained decline in money supply could lead to a reduction in economic activity, while an increase in money supply could lead to inflationary pressures.
The CBN’s monetary policy efforts will play a crucial role in shaping the money supply trend and promoting economic stability.
As the economy continues to evolve, it is likely that the money supply will be influenced by various factors, including changes in economic activity, inflation, and interest rates.
The CBN’s efforts to manage liquidity and stabilize the economy will be critical in promoting economic stability and reducing inflationary pressures.
In the long term, the money supply trend will be shaped by the CBN’s monetary policy decisions and the overall performance of the economy.
A stable and growing economy will require a well-managed money supply, and the CBN’s efforts will be crucial in achieving this goal.
The impact of the decline in money supply on the economy will depend on various factors, including the response of economic agents to changes in liquidity and interest rates.
The CBN’s efforts to manage liquidity and stabilize the economy may help to mitigate the impact of the decline in money supply, but the outcome will depend on a range of factors, including the performance of the economy and the effectiveness of monetary policy.
