Central Bank bills held by money-holding sectors surged to N5.60 trillion in September 2026 from simply N9.68 billion in August, accounting for 74.4% of the month-to-month increase in the nation’s broad money supply.
Data from the Central Bank of Nigeria (CBN) present that the worth of these bills elevated by N5.59 trillion inside one month, whereas broad money supply, measured by M3, rose by N7.51 trillion to N146.60 trillion.
The growth presents a major shift in the composition of Nigeria’s financial aggregates, with the increase in CBN bills accounting for the majority of the month-to-month growth in M3.
Although broad money supply elevated by 5.40% month-on-month to N146.60 trillion, the narrower M2 measure, which excludes CBN bills, rose by a modest 1.38% to N141.00 trillion from N139.08 trillion in August. The increase in headline money supply was pushed primarily by the sharp rise in CBN bills.
CBN bills account for bulk of month-to-month increase
The CBN’s financial statistics distinguish between M3 and M2, with CBN bills held by money-holding sectors included in the broader M3 measure.
- In September, CBN bills rose to N5.60 trillion from N9.68 billion in August, representing an increase of roughly 57,744% month-on-month.
- The increase compares with the N7.51 trillion rise in broad money supply over the identical interval.
- Consequently, the increase in CBN bills accounted for roughly N5.59 trillion of the month-to-month growth in M3, equal to 74.4% of the entire increase.
By comparability, M2 elevated by N1.92 trillion, representing the remaining 25.6% of the increase in broad money supply.
The sharp increase suggests the significance of distinguishing development in the financial combination from an precise increase in funds obtainable for transactions, financial savings, and credit score creation.
Notably, the increase in CBN bills doesn’t set up that an equal quantity of recent money is pumped into the economic system. CBN bills are interest-bearing devices that can be utilized for liquidity administration, whereas their inclusion in M3 displays the composition of the financial combination.
M2 data extra average growth
While CBN bills recorded an distinctive increase, Nigeria’s M2 money supply rose by 1.38% month-on-month to N141.00 trillion in September from N139.08 trillion in August.
On a year-on-year foundation, M2 elevated by 19.72% from N117.77 trillion recorded in September 2025.
The narrower financial combination contains slim money and quasi-money, capturing foreign money and deposits alongside different comparatively liquid financial savings and deposit balances.
- Within M2, quasi-money elevated by 1.03% month-on-month to N96.95 trillion from N95.97 trillion, whereas slim money rose by 2.17% to N44.05 trillion from N43.11 trillion.
- Narrow money, which captures extra instantly spendable financial balances, due to this fact recorded a stronger month-to-month increase than M2.
- Currency held outdoors banks elevated by 1.00% to N4.92 trillion from N4.87 trillion, whereas demand deposits rose by 2.32% to N39.12 trillion from N38.24 trillion.
These actions level to an increase in money holdings and transaction balances through the month.
Government credit score rises as private-sector credit score declines
Within the CBN’s financial statistics, web home credit score elevated by 4.96% month-on-month to N123.34 trillion in September from N117.51 trillion in August.
- The increase was accompanied by a major rise in credit score to the federal government, which grew by 19.26% to N39.40 trillion from N33.04 trillion.
- This represented an increase of roughly N6.36 trillion inside one month. On a year-on-year foundation, credit score to the federal government rose by 63.09% from N24.16 trillion in September 2025.
- In distinction, credit score to the non-public sector declined by 0.64% month-on-month to N83.93 trillion from N84.47 trillion.
- Despite the month-to-month decline, private-sector credit score remained 15.73% above its September 2025 degree, rising from N72.53 trillion to N83.93 trillion.
The contrasting actions present one other essential dimension to the financial knowledge. While lending to the non-public sector remained greater than a 12 months earlier, its month-to-month decline coincided with a pointy growth in credit score to the federal government.
Net international property decline
The CBN knowledge additionally present a decline in web international property, which fell by 13.57% month-on-month to N30.90 trillion in September from N35.75 trillion in August.
- Compared with N41.66 trillion in September 2025, web international property declined by 25.83%.
- In distinction, web home property elevated by 11.97% month-on-month to N115.70 trillion from N103.34 trillion and rose by 51.99% year-on-year.
The figures point out a shift in the composition of the financial survey in direction of home property, whilst web international property contracted.
Backstory
The sharp increase in CBN bills recorded in September is attributable to the apex financial institution’s liquidity-management operations, because it continued to use Open Market Operations (OMO) bills to take up extra funds from the monetary system.
Nairametrics reported that the CBN bought roughly N17.51 trillion in OMO bills throughout September 2026, whereas about N10.89 trillion in maturing bills was repaid, leaving a web liquidity withdrawal of roughly N6.62 trillion.
The operations counsel that the apex financial institution was actively managing liquidity through the month.
What the figures imply
The September knowledge spotlight the significance of trying past the headline money supply determine when assessing financial situations in Nigeria.
Although M3 elevated by 5.40% throughout the month, the distinctive rise in CBN bills accounted for many of the growth, whereas M2 grew by 1.38%.
Changes in financial aggregates don’t routinely translate into greater shopper costs, elevated lending, or stronger financial exercise. The eventual affect depends upon money demand, credit score situations, the rate of circulation, and the supply of items and companies.
For policymakers, the composition of money supply is especially related when balancing inflation management with the necessity to assist productive financial exercise.
For now, the figures level to an unusually giant contribution from CBN bills, alongside rising authorities credit score, a marginal month-to-month decline in private-sector credit score and weaker web international property.
