Nigeria's broad money supply has expanded to N133.25 trillion, marking a significant increase from the N129.21 trillion recorded in May 2026.
The surge in liquidity comes despite the central bank maintaining its benchmark interest rate at 26.5%, a level intended to curb inflationary pressures and stabilize the naira.
The expansion of the money supply presents a challenge for monetary policy transmission.
With borrowing costs at multi-year highs, the central bank aims to dampen demand and anchor inflation expectations.
However, the continued growth in liquidity suggests that underlying pressures on the currency and price levels remain entrenched, potentially limiting the effectiveness of tight monetary policy in the near term.
This development follows a period of volatile inflation dynamics in the West African economy.