Nigeria’s Net Domestic Assets climbed by 27.1 per cent year-on-year to N101.006 trillion in July 2026, up from N79.496 trillion recorded in the same period of 2025, according to the Central Bank of Nigeria’s money and credit statistics for July 2026.

NDA reflects the CBN’s domestic claims on behalf of the Federal Government, covering lending to commercial banks, government securities and other domestic investments, while excluding foreign assets.

The measure serves as a key indicator of domestic liquidity and broader monetary conditions within the economy.

The strong growth in domestic assets stands in contrast to a weakening external position, as Net Foreign Assets dropped to N37.710 trillion in July 2026 from N40.390 trillion in the corresponding period of 2025.

This marks a decline of N2.680 trillion, or 6.6 per cent, signalling sustained pressure on the country’s external position.

Net Foreign Assets measure the difference between a country’s foreign assets and foreign liabilities, offering insight into its external financial standing and its capacity to meet foreign obligations.

Further analysis of the CBN figures showed that broad money supply, M3, grew by 15.8 per cent year-on-year to N138.776 trillion in July 2026, up from N119.887 trillion in July 2025.

The rise in M3 points to an expansion in the volume of money circulating in the economy, though its ultimate effect on economic activity will hinge on whether the extra liquidity flows into productive investment or is absorbed by consumption.

M3 is made up of CBN Bills held by money-holding sectors together with the components of M2, which itself consists mainly of narrow money (M1) and quasi-money.

Analysts note that the widening divergence between the growth in Net Domestic Assets and the decline in Net Foreign Assets underscores a shift in the composition of Nigeria’s monetary expansion, with domestic sources playing an increasingly dominant role in 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.