Nigeria’a Broad Money Supply Jumps 51% to N108.96trn

According to the Central Bank of Nigeria’s Money and Credit Statistics data released on Monday, these latest figures were higher than the N72.03 trillion in the corresponding period of 2023.

Broad Money Supply (M2) represents cash and demand deposits as well as savings deposits, money market deposits, and time deposits.

According to the report, the M2 recorded a six-month increase since April 2024.

The trend, however, reversed in October 2024, declining month-on-month by 1.5 per cent to N107.7 trillion from N109.4 trillion in September 2024, before shooting up again by 1.2 per cent to N108.96 trillion in November.

The report also showed that the money supply increase followed positive component changes.

Quasi-money, including savings deposits, time deposits, and other near-money assets, also rose marginally.

The data showed that Quasi Money grew by 1.96 per cent year-on-year to N72.7 from N71.3 trillion in November 2023.

Similarly, Demand Deposits increased by 34.4 per cent year-on-year to N31.6 trillion in November 2024 from N23.2 trillion in November 2023.

Currency outside banks increased by 50.9 per cent year-on-year to N4.65 trillion in November 2024 from N3.08 trillion in November 2023.

Narrow money (M1), also grew by 38 per cent year-on-year to N36.3 trillion in November 2024 from N26.3 trillion in November 2023.

According to the CBN, credit to the government increased by 54 per cent year-on-year to N39.6 trillion in November 2024 from N25.7 trillion in November 2023.

On the other hand, credit to the private sector rose year-on-year by 27 per cent to N75.96 trillion in November 2024 from N59.7 trillion in November 2023.

This resulted in a 91 per cent year-on-year rise in net domestic credit of N115.6 trillion in November 2024 from N60.5 trillion in the corresponding period of 2023.