Nigeria’s Net Domestic Assets rises 20.3% to N93.8trn

By Peter Egwuatu

Nigeria’s Net Domestic Assets (NDA), rose by 21.2 per cent, Year-on-Year (YoY) to N94.742 trillion in February 2026 from N78.177 trillion in the corresponding period of 2025.

Net Domestic Assets (NDA) represents the Central Bank of Nigeria (CBN)’s domestic claims, including loans to commercial banks, government securities, and domestic investments, excluding foreign assets. It is a critical component of monetary policy and liquidity management.

The CBN’s money and credit statistics for February revealed this, indicating that the increase was driven by stronger domestic credit conditions, higher government borrowing, and increased lending by banks to the private sector.

In contrast however, Net Foreign Assets (NFA) fell to N29.609 trillion in January 2026 from N33.188 trillion recorded in the same period in 2025, showing a decline of N3.579 trillion or 12.7%, signalling external pressures.

NFA represents the difference between Nigeria’s total foreign assets (held by monetary authorities/banks) and its total foreign liabilities. It indicates whether a nation is a net creditor or debtor, serving as a key indicator of financial stability and the nation’s external wealth.

Meanwhile, further breakdown of the CBN data shows that Money Supply (M3), a measure of total money supply in the country, inched up by 11.2% to N123.150 trillion in January 2026 from N110.709 trillion in the same period in 2025, indicating more money in the economy.

M3 covers CBN Bills held by Money Holding Sectors and components of M2. The components of M2, which are Quasi Money and Narrow Money (M1)—currency outside banks and demand deposits—collectively grew by 11.2% to N123.140 trillion in February 2026 from N110.698 trillion in the same period in 2025.

Commenting on the development, Oluropo Dada, President, Chartered Institute of Stockbrokers (CIS), said: “The combination of rising NDA, declining NFA, and increasing money supply has important implications for inflation, exchange rate stability, and overall macroeconomic balance in Nigeria.

“From a macroeconomic standpoint, the year-on-year increase of Nigeria’s NDA by 20.3% to N93.755 trillion suggests a significant expansion in domestically generated liquidity.”

This could elevate aggregate demand, intensify inflationary pressures, and increase demand for foreign exchange, putting pressure on the naira.

“The situation becomes more delicate when rising NDA is accompanied by declining NFA and an expanding money supply. This mix could weaken investor confidence, heighten exchange rate volatility, and increase vulnerability to imported inflation.

“Policymakers may therefore need to tighten liquidity conditions, strengthen reserves, and improve fiscal discipline to maintain macroeconomic stability.”

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