Nigeria’s financial system has recorded a significant shift as the country’s Net Domestic Assets (NDA) rose by 20.3 percent year-on-year to N93.8 trillion in February 2026, reflecting increased liquidity within the domestic economy.
According to data from the Central Bank of Nigeria, this represents a sharp rise from N78.177 trillion recorded in the same period in 2025.
Net Domestic Assets refer to the Central Bank’s domestic financial exposure, including loans to commercial banks, government securities, and other domestic investments, excluding foreign assets. It is a key indicator used in assessing monetary conditions and liquidity management in the economy.
đź“Š What Is Driving the Increase in Domestic Assets
The rise in NDA was driven by stronger domestic credit conditions, increased government borrowing, and higher lending activity by commercial banks to the private sector.
This suggests that more money is circulating within the domestic financial system, largely supported by credit expansion and public sector financing activities.
📉 Net Foreign Assets Decline Amid External Pressure
In contrast, Nigeria’s Net Foreign Assets (NFA) declined to N29.609 trillion in January 2026 from N33.188 trillion in the same period in 2025, representing a drop of 12.7 percent.
Net Foreign Assets measure the difference between a country’s foreign assets and foreign liabilities and serve as an indicator of external financial strength.
The decline signals increasing external pressures and reduced net foreign wealth within the country’s monetary system.
đź’° Money Supply Continues to Grow
Further data from the Central Bank shows that broad money supply (M3) increased by 11.2 percent to N123.150 trillion in January 2026, compared to N110.709 trillion in the same period in 2025.
M3 represents the total money circulating in the economy, including cash outside banks, deposits, and other liquid financial instruments.
The growth in money supply reflects an expansion in liquidity across the financial system, indicating more money available for spending, investment, and lending.
🏦 Expert Warning on Inflation and Currency Pressure
Commenting on the development, President of the Chartered Institute of Stockbrokers Chartered Institute of Stockbrokers, Oluropo Dada, said the combination of rising domestic assets, declining foreign assets, and increasing money supply carries major implications for inflation and exchange rate stability.
He noted that the expansion in domestic liquidity could increase aggregate demand, worsen inflationary pressures, and raise demand for foreign exchange, which may further pressure the naira in the currency market.
