Oil-driven FX inflows swell Nigeria’s money supply as businesses hold back borrowing

Nigeria’s money supply surged in May 2026 due to increased foreign exchange inflows from oil exports, despite businesses hesitating to take on new loans despite interest rate cuts by the Central Bank of Nigeria. The rise in broad money supply was driven by growth in net foreign assets, reflecting higher crude oil revenues amid geopolitical tensions. However, private sector credit growth remained sluggish, indicating cautious business sentiment amid global uncertainties and supply chain disruptions. The Central Bank’s monetary easing has yet to spur significant borrowing, as companies prioritize cash preservation and risk management.

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