Nigeria’s Net Domestic Assets Rise 20.3% to N93.8 Trillion

Nigeria’s Net Domestic Assets (NDA) saw a significant boost, rising 21.2% Year-on-Year (YoY) to N94.742 trillion in February 2026, compared to N78.177 trillion in February 2025. 

This shows a stronger domestic credit conditions, increased government borrowing, and higher lending by commercial banks to the private sector.

What are net domestic assets and the forces behind the rise?

Net Domestic Assets represent the Central Bank of Nigeria (CBN)’s domestic claims, including loans to commercial banks, government securities, and domestic investments, excluding foreign assets. These assets are critical for managing monetary policy and liquidity within the country.

The CBN’s February 2026 money and credit statistics show that the increase in NDA was primarily driven by robust credit growth within the country. 

Commercial banks’ willingness to extend loans to the private sector and heightened borrowing by the government contributed to the overall rise in domestic liquidity.

A dip in Net Foreign Assets

While Nigeria’s NDA climbed, the country’s Net Foreign Assets (NFA) saw a decline. NFA dropped to N29.609 trillion in January 2026 from N33.188 trillion in the same period of 2025, reflecting a decrease of 12.7% or N3.579 trillion. 

NFA measures the difference between the country’s foreign assets and its foreign liabilities, serving as an indicator of financial stability and external wealth.

This drop in NFA highlights the external pressures faced by Nigeria, as the country’s foreign assets fell while its liabilities remained steady. The decline in NFA suggests that Nigeria may be facing growing challenges on the external front, which could have broader implications for its foreign exchange reserves and external balance.

The rising money supply

Another important figure in the CBN’s report is the increase in Nigeria’s Money Supply (M3), which rose 11.2% to N123.150 trillion in January 2026 from N110.709 trillion in January 2025. M3 includes CBN Bills held by money-holding sectors and components of M2, which covers Quasi Money and Narrow Money (M1), currency outside banks and demand deposits. 

This increase in money supply indicates that more money is circulating in the economy, which could fuel inflationary pressures.

It’s implications for Nigeria’s Economy

Oluropo Dada, President of the Chartered Institute of Stockbrokers (CIS), commented on the development, noting that the combination of rising NDA, declining NFA, and increasing money supply could have significant consequences for Nigeria’s macroeconomic balance. 

“The 20.3% increase in Nigeria’s NDA suggests a major expansion in domestically generated liquidity,” Dada explained.

While an increase in NDA can boost aggregate demand, it may also intensify inflationary pressures and fuel demand for foreign exchange, placing additional strain on the naira. 

The mix of rising NDA with falling NFA and an expanding money supply could further weaken investor confidence, increase exchange rate volatility, and make Nigeria more vulnerable to imported inflation.