Nigeria’s broad money supply (M3) reached an unprecedented N119.10 trillion in April 2025, marking a 4.3% increase from N114.22 trillion in March. This surge occurs despite the Central Bank of Nigeria’s (CBN) decision to maintain its tight monetary policy stance, including keeping the Monetary Policy Rate (MPR) steady at 27.5%
The CBN’s Monetary Policy Committee (MPC), during its 300th meeting held on May 19-20, 2025, unanimously agreed to retain key policy parameters:
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Monetary Policy Rate (MPR): 27.5%
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Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks
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Liquidity Ratio: 30%
These measures aim to anchor inflation expectations and stabilize the naira .sures within the economy. Analysts attribute this growth to factors such as increased government credit and foreign asset accumulation, potentially driven by revaluation gains .
March, according to the National Bureau of Statistics. This development provides the CBN with some leeway to assess the impact of its policies before considering further adjustments .
The next MPC meeting is scheduled for July 21-22, 2025, where policymakers will evaluate economic indicators to determine the appropriate monetary policy direction.
