Nigeria’s Net Domestic Assets (NDA) rose sharply by 21.2 per cent year-on-year to N94.742 trillion in February 2026, up from N78.177 trillion recorded in the same period of 2025.
Net Domestic Assets represent the Central Bank of Nigeria’s (CBN) domestic financial claims, including loans to commercial banks, government securities, and domestic investments, excluding foreign holdings. It is a key indicator used in assessing liquidity conditions and monetary policy direction.
According to the CBN’s money and credit statistics for February, the increase in NDA was driven by stronger domestic credit expansion, higher government borrowing, and increased lending to the private sector by deposit money banks.
In contrast, Net Foreign Assets (NFA) declined to N29.609 trillion in January 2026, down from N33.188 trillion in January 2025, representing a drop of N3.579 trillion or 12.7 per cent. This signals mounting external pressures on the economy.
Net Foreign Assets reflect the difference between Nigeria’s foreign assets and liabilities and are widely seen as a measure of external financial strength.
Further data from the CBN showed that Money Supply (M3) increased by 11.2 per cent to N123.150 trillion in January 2026, compared to N110.709 trillion in the corresponding period of 2025, indicating a rise in overall liquidity within the economy.
M3 includes quasi money and narrow money (M1), covering currency outside banks and demand deposits, alongside CBN-held instruments.
Commenting on the development, Oluropo Dada, President of the Chartered Institute of Stockbrokers (CIS), warned that the combination of rising NDA, declining NFA, and expanding money supply could heighten inflation and weaken exchange rate stability.
He noted that increased domestic liquidity could fuel aggregate demand, intensify inflationary pressure, and raise demand for foreign exchange, further stressing the naira.
Dada added that the situation could worsen investor confidence and increase vulnerability to imported inflation if not properly managed.
He urged policymakers to tighten liquidity conditions, strengthen external reserves, and improve fiscal discipline to maintain macroeconomic stability.
