Central Bank of Nigeria bills held by money-holding sectors surged to N5.60 trillion in September 2026 from N9.68 billion in August, the CBN said, accounting for 74.4% of the monthly increase in the country's broad money supply. The value of these bills increased by N5.59 trillion within one month, while broad money supply measured by M3 rose by N7.51 trillion to N146.60 trillion over the same period. This represents a significant shift in the composition of Nigeria's monetary aggregates, with the expansion in CBN bills driving most of the monthly growth in M3.
The CBN data showed that although broad money supply increased by 5.40% month-on-month to N146.60 trillion, the narrower M2 measure, which excludes CBN bills, rose by just 1.38% to N141.00 trillion from N139.08 trillion in August. The M2 increase of N1.92 trillion represented the remaining 25.6% of broad money supply growth. On a year-on-year basis, M2 increased by 19.72% from N117.77 trillion in September 2025. The CBN distinguishes between M3 and M2, with CBN bills held by money-holding sectors included only in the broader M3 measure.
The sharp rise in CBN bills reflected the apex bank's liquidity-management operations during September. The CBN sold approximately N17.51 trillion in Open Market Operations bills during the month, while about N10.89 trillion in maturing bills was repaid, leaving a net liquidity withdrawal of approximately N6.62 trillion. However, the CBN cautioned that the increase in bills does not establish that an equivalent amount of fresh cash was pumped into the economy, as CBN bills are interest-bearing instruments used for liquidity management rather than direct money injection.
Net domestic credit increased by 4.96% month-on-month to N123.34 trillion in September from N117.51 trillion in August, the CBN said. The data showed a sharp expansion in credit to government alongside a monthly decline in lending to the private sector. Net foreign assets fell by 13.57% month-on-month to N30.90 trillion in September from N35.75 trillion in August, pointing to a shift in the monetary survey's composition towards domestic assets.
The movements highlight the importance of distinguishing growth in monetary aggregates from actual increases in funds available for transactions, savings and credit creation. Changes in monetary aggregates do not automatically translate into higher consumer prices, increased lending or stronger economic activity, the CBN indicated, as the eventual impact depends on money demand, credit conditions, the velocity of circulation and the supply of goods and services. For savers and borrowers, these shifts mean that headline money supply figures mask underlying changes in credit availability and inflation pressures that affect interest rates and lending conditions.