Nigeria financial system sees rising liquidity and money supply

Nigeria’s broad money supply (M3) rose by N7.51 trillion in September 2026, reaching N146.60 trillion. This 5.4% month-on-month increase was largely driven by a surge in Central Bank of Nigeria (CBN) bills, which rose from N9.68 billion in August to N5.60 trillion in September, accounting for approximately 74.4% of the total monthly expansion.

Banking system liquidity also saw significant movement. Excess liquidity rose by 32.45% to N7.74 trillion following a N2.07 trillion Open Market Operations (OMO) bill maturity. While banks prepared for further inflows of nearly N5 trillion from various sources, including state allocations and maturing treasury bills, analysts expect the CBN may use OMO bill auctions to mop up excess cash and manage short-term interest rates.

In a separate regulatory development, CBN Governor Olayemi Cardoso warned that individuals who fail to return money mistakenly transferred into their accounts could face five to 10 years of imprisonment. The warning, issued during the ‘CBN Listens’ programme, also cautioned against fraudulent attempts to access personal financial information.