CBN Releases New Data on Money Supply in Nigeria, Defends ATM New Charges From March 1

• The CBN has announced an increased in the country's money supply, and also currency outside banks
• According to its latest monetary statistics, the money supply has seen a substantial increase to over N110 trillion
• The CBN has also defended its decision to increase charges on cash withdrawals from ATM of other banks

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria has revealed that Nigeria’s broad Money Supply (M²) has increased to 110.97 trillion in January 202

The December figure is a significant rise when compared to N93.77 trillion in the corresponding period of 2024.

CBN disclosed the figures in its latest money and credit statistics data on its website.

Money supply refers to the total amount of money circulating in an economy at a given time. It includes cash, coins, bank account balances, and other liquid assets that can be easily converted to cash.

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Nigeria’s money supply rises

Vanguard reports that the increase in the money supply was driven by 21% surge in Quasi-money.

Quasi money which comprising savings deposits, time deposits, and other near-money assets, rose by 21% year-on-year to N74.07 trillion from N61.2 trillion in January 2024

Demand Deposits also saw a notable increase, rising by 13.6% YoY to N32.15 trillion in January 2025 from N28.3 trillion in January 2024.

The CBN also revealed that currency outside banks grew by 44.5% YoY, reaching NN4.74 trillion in January 2025 from N3.28 trillion in January 2024.

Also, Narrow money (M1), representing more liquid forms of money, grew by 16.7% YoY to N36.9 trillion in January 2025 from N31.6 trillion in January 2024

The growth in money supply was also reflected in the high level of government domestic borrowing from the private sector, which is evident in the credit data.

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According to the CBN, credit to the government increased by 54% YoY to N24.51 trillion in January 2025 from N23.51 trillion in January 2024.

While credit to the private sector dropped by 2.09% Year on Year to N74.9 trillion in January 2025 from N76.5 trillion in January 2024.

As a result, net domestic credit fell by 0.5% Year on Year to N99.4 trillion in January 2025 from N99.9 trillion in the corresponding period of 2024.

CBN defends ATM withdrawal charges

Legit.ng reports that the Central Bank of Nigeria (CBN) has defended its decision to introduce a N100 charge on cash withdrawals from ATMs of other banks.

The CBN explained that the policy aims to encourage banks to increase cash availability at ATMs, leading to the proliferation of ATMs and making access to cash more seamless.

Nigerians have reacted angrily to the new ATM charges, which will take effect on March 1, with civil society organizations calling for a reversal of the policy.

Source: Legit.ng