Monetary and Credit Statistics May 2026

FMDA Journal

CBN May 2026 Money and Credit Data – Key Highlights and Insights

The Central Bank of Nigeria (CBN) has released the Monetary and Credit Statistics for May 2026, providing updated insight into system liquidity, money supply movements, and credit dynamics.  Below are the key highlights:

Key Highlights (May 2026)

  • Money Supply (M3) increased by 3.38% m/m to N129.21 trillion in May (April: N124.99 trillion), driven largely by foreign currency inflow.
  • Money Supply (M2) increased by 3.38% m/m to N129.20 trillion, from N124.98 trillion in April.
  • Net Foreign Assets (NFA) increased by 12.23% to N26.95 trillion, from N24.01 trillion, suggesting improved foreign currency inflows.
  • Net Domestic Assets (NDA) increased by 1.28% to N102.26 trillion, from N100.97 trillion in April.
  • Credit to Government increased by 1.97% to N40.38 trillion, reflecting continued public-sector borrowing.
  • Private Sector Credit increased marginally by 0.57% to N81.04 trillion, suggesting modest growth in lending activity.
  • Currency Outside Banks (COB) increased by 2.15% to N5.19 trillion, from N5.08 trillion in April.
  • Currency in Circulation (CIC) increased by 0.77% to N5.69 trillion, from N5.65 trillion in April.
  • Bank Reserves declined by 2.43% to N33.76 trillion, from N34.60 trillion in April.
  • Base Money declined by 1.98% to N39.45 trillion, from N40.25 trillion in April.

Forward Note

  • Improved money supply in May was largely driven by stronger foreign currency inflows, as reflected in the 12.23% increase in Net Foreign Assets (NFA). This suggests that the country’s earnings from external engagements improved during the month. The increase may partly reflect higher oil export receipts supported by elevated crude oil prices during the US-Iran conflict, alongside other autonomous inflows into the economy. Meanwhile, the reduction of the Monetary Policy Rate (MPR) in late February 2026 did not translate into a significant increase in private sector borrowing, despite expectations that lower interest rates would stimulate credit demand.
  • This highlights the fact that borrowing decisions are influenced by factors beyond interest rates alone. Global uncertainties, including the disruption of key shipping routes during the US-Iran conflict, have increased freight costs and production expenses for manufacturers. Rising input costs, supply chain disruptions, and uncertainty over future demand may have encouraged businesses to postpone expansion plans and limit new borrowing commitments. Consequently, private sector credit grew by only 0.57% in May, suggesting that firms remain cautious despite the gradual easing of monetary policy.

Download the report here

 

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