Nigeria’s net domestic assets rise to N101trn

By Peter Egwuatu

Nigeria’s Net Domestic Assets (NDA) rose by 27.1 per cent year-on-year (YoY) to N101.006 trillion in July 2026 from N79.496 trillion recorded in the corresponding period of 2025, according to the money and credit statistics of the Central Bank of Nigeria, CBN, for July 2026.

NDA represents the Central Bank of Nigeria’s (CBN) domestic claims (assets) on behalf of the Federal Government, including lending to commercial banks, government securities and other domestic investments, but excluding foreign assets.

The measure is an important indicator of domestic liquidity and monetary conditions in the economy.

The sharp rise in domestic assets, however, contrasts with the decline in Nigeria’s external position, as Net Foreign Assets (NFA) fell to N37.710 trillion in July 2026 from N40.390 trillion in the corresponding period of 2025.

This represents a decline of N2.680 trillion, or 6.6 per cent, pointing to continued pressure on the country’s external position.

Net Foreign Assets represent the difference between a country’s foreign assets and foreign liabilities and provide an indication of its external financial position and capacity to meet foreign obligations.

Meanwhile, further analysis of the CBN data showed that broad money supply, M3, increased by 15.8 per cent YoY to N138.776 trillion in July 2026 from N119.887 trillion in July 2025.

The growth in M3 indicates an expansion in the amount of money circulating within the economy, although the impact on economic activity will depend largely on whether the additional liquidity is channelled into productive investment or consumption.

M3 comprises CBN Bills held by money-holding sectors and the components of M2. The latter consists principally of narrow money (M1) and quasi-money.

Analysts said the widening gap between the growth in Net Domestic Assets and the decline in Net Foreign Assets highlights the changing composition of Nigeria’s monetary expansion, with domestic sources increasingly accounting for liquidity growth.

Clifford Egbomeade, economic and communications analyst, said, the 27.1 per cent increase in NDA should be viewed cautiously because a significant expansion in domestic assets, particularly where it is associated with government borrowing, could increase liquidity without necessarily translating into equivalent growth in productive economic activity.