CBN October 2025 Money and Credit Data – Key Highlights and Insights
The Central Bank of Nigeria (CBN) has released the Monetary and Credit Statistics for October 2025, providing updated insight into system liquidity, money supply movements, and credit dynamics. Below are the key highlights:
Key Highlights (October 2025)
Broad Money Supply (M3): Increased slightly by +1.1% m/m to N119.04 trillion in October (September: N117.78 trillion), signalling a mild liquidity expansion following the late-September policy easing.
- Money Supply (M2): Rose to N119.03 trillion, up from N117.77 trillion in September.
- Net Foreign Assets (NFA): Declined sharply by 16.5 % to N34.80 trillion from N41.66 trillion in September, reflecting lower FX asset buffers during the month.
- Net Domestic Assets (NDA): Increased by 10.7% to N84.23 trillion, compared to N76.12 trillion in September, driven by stronger domestic credit expansion.
- Net Domestic Credit (NDC): Grew by +2.6% m/m to N99.20 trillion (September: N96.69 trillion).
- Credit to Government: Rose to N24.79 trillion, up from N24.16 trillion in September, continuing the government’s increased borrowing trajectory.
- Credit to the Private Sector: Climbed by 2.6% to N74.41 trillion, up from N72.53 trillion in September, suggesting a rebound in private-sector lending after months of tight conditions.
- Base Money (MB): Fell by –7.5% m/m to N36.64 trillion (September: N39.62 trillion), driven by lower bank reserves.
- Currency Outside Banks (COB): Increased slightly by 4.07% to N4.65 trillion from N4.47 trillion in September.
- Currency in Circulation (CIC): Rose marginally by 2.12% to N5.06 trillion from N4.95 trillion in September.
- The mild increase in money supply suggests the CBN’s policy easing (MPR cut and CRR reduction in late September) did not significantly impact liquidity in October but has started to ease tightening pressures.
- The strong increase in Net Domestic Credit, driven by both government and private-sector borrowing, points to improving credit conditions and possibly rising loan demand.
- The drop in Net Foreign Assets indicates weaker FX buffers, underscoring continuing foreign-exchange pressures.
- The decline in Base Money, despite growth in M3, suggests banks are still managing reserves conservatively even after the CRR adjustment.
- With the MPC holding the MPR at 27% but significantly narrowing the asymmetric corridor to +50bps / –450bps, liquidity conditions could ease in the near term. The cheaper access to the CBN’s lending window and the sharply lower remuneration for deposits will discourage banks from sterilising funds and could push more liquidity into the interbank market. This adjustment reduces the likelihood of sharp spikes in overnight rates, even if reserve balances tighten. Credit to private sector may further increase in November and December.
- Banks and financial institutions should still track liquidity movements closely, as rising credit demand and moderate system liquidity could create short, temporary pressures.
