CBN Reports Surge in Money Supply, Justifies New ATM Withdrawal Charges
The Central Bank of Nigeria (CBN) has reported a significant rise in Nigeria’s broad Money Supply (M²), which reached N110.97 trillion in January 2025. This marks a substantial increase compared to the N93.77 trillion recorded in the same period of 2024.
According to the latest money and credit statistics released on the CBN’s official website, the growth in money supply is attributed to increased government domestic borrowing from the private sector and higher liquidity in the financial system. Money supply refers to the total amount of money circulating in an economy, including cash, coins, bank account balances, and other liquid assets.
The report also indicates a notable increase in Demand Deposits, which rose by 13.6% Year-on-Year (YoY) to N32.15 trillion in January 2025 from N28.3 trillion in January 2024. Additionally, currency outside banks grew by 44.5% YoY, reaching N4.74 trillion in January 2025 from N3.28 trillion in January 2024.
Furthermore, Narrow Money (M1), representing more liquid forms of money, expanded by 16.7% YoY to N36.9 trillion in January 2025 from N31.6 trillion in January 2024. However, credit to the private sector saw a slight decline of 2.09% YoY, dropping to N74.9 trillion in January 2025 from N76.5 trillion in January 2024. As a result, net domestic credit fell by 0.5% YoY to N99.4 trillion in January 2025 from N99.9 trillion in the corresponding period of 2024.
CBN Defends ATM Withdrawal Charges
The CBN has also justified its recent decision to impose a N100 charge on cash withdrawals from ATMs of other banks, a policy set to take effect on March 1. According to a report by Legit.ng, the apex bank explained that this measure aims to encourage financial institutions to increase cash availability at ATMs, thereby improving access to cash and expanding ATM infrastructure across the country.
However, the new ATM withdrawal charges have sparked outrage among Nigerians, with civil society organizations and consumer rights groups calling for an immediate reversal of the policy. Critics argue that the charge places an unnecessary financial burden on customers who rely on ATM services for daily transactions.
The CBN maintains that the policy is designed to enhance banking efficiency and ease cash flow distribution across the nation’s financial system. Despite the backlash, it remains to be seen whether the regulator will adjust its stance in response to public outcry.
