Nigeria’s Money Supply Drops to N118.99tn Amid Rising Government Borrowing
Nigeria’s money supply (M2) declined by 0.23% to N118.99 trillion in May 2025 from N119.27 trillion in April, according to CBN data. The drop marks the third decline this year, driven by a fall in demand deposits and narrow money, despite a slight rise in quasi money and currency outside banks.
Meanwhile, government borrowing surged by N1.14 trillion in May, reversing a two-month decline and pushing credit to government to N25.07 trillion. Credit to the private sector dipped 0.32% to N77.83 trillion.
Amid debt concerns, analysts warned that Nigeria’s fiscal deficit could exceed N17 trillion in 2025, with total debt hitting N180 trillion. Despite repaying a $3.4bn IMF loan, experts say urgent fiscal reforms are needed to ensure sustainability.
