April 17, (THEWILL) — Nigeria’s Net Domestic Assets (NDA) recorded a strong year-on-year increase, rising by about 21 percent to ₦94.74 trillion in February 2026 from ₦78.18 trillion in the same period of 2025, reflecting expanding liquidity within the economy.
Data from the Central Bank of Nigeria (CBN) showed that stronger domestic credit conditions, increased government borrowing, and higher lending to the private sector drove the growth. The NDA, which captures the CBN’s domestic claims such as loans, securities, and investments, remains a key indicator of monetary conditions.
However, the data also revealed mounting external pressures, as Net Foreign Assets (NFA) declined by 12.7 percent to ₦29.61 trillion from ₦33.19 trillion a year earlier. This drop signals weakening external buffers and potential strain on Nigeria’s financial stability.
At the same time, broad money supply (M3) rose by 11.2 percent to ₦123.15 trillion, indicating increased liquidity in the system. The expansion reflects growth across key components, including currency in circulation and demand deposits.
Analysts say the combination of rising NDA, falling NFA, and expanding money supply presents a mixed outlook for the economy. While increased domestic liquidity can support growth and credit expansion, it may also heighten inflationary pressures and increase demand for foreign exchange.
According to market experts, this dynamic could weaken investor confidence and contribute to exchange rate volatility if not carefully managed. They note that policymakers may need to tighten liquidity conditions, rebuild external reserves, and reinforce fiscal discipline to maintain macroeconomic stability.
The trend underscores the delicate balance between supporting economic growth and preserving price and exchange rate stability.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
