The Central Bank of Nigeria (CBN) said that Nigeria’s Broad Money Supply (M2) increased by 51% year-over-year (YoY) to N108.96 trillion in November 2024 as a result of the Federal Government’s increased borrowings.
The increase was from N72.03 trillion in the same period of 2023 was made public in CBN’s Money and Credit Statistics Monday.
The report said demand deposits, savings deposits, money market instruments, and time deposits, increased gradually fom April to September 2024, M2.
But in October 2024, the trend turned around, falling 1.5% month over month to N107.7 trillion from N109.4 trillion in September 2024 before rising 1.2% to N108.96 trillion in November.
The report also showed that the YoY money supply increase followed positive component changes.
There was also a slight increase in quasi-money, which includes time deposits, savings accounts, and other near-money assets.
Quasi Money increased 1.96 percent year over year to N72.7 trillion from N71.3 trillion in November 2023, according to the data.
Similarly, demand deposits rose from N23.2 trillion in November 2023 to N31.6 trillion in November 2024, a 34.4% YoY increase.
The amount of currency outside of banks rose from N3.08 trillion in November 2023 to N4.65 trillion in November 2024, a 50.9% YoY increase.
The value of narrow money (M1) also increased significantly, rising 38% year over year from N26.3 trillion in November 2023 to N36.3 trillion in November 2024.
A substantial portion of the money supply increase was tied to domestic borrowing by the federal government.
Meanwhile, credit to the government climbed 54% year over year to N39.6 trillion in November 2024 from N25.7 trillion in November 2023, according to the CBN.
In contrast, private sector credit increased 27% year over year from N59.7 trillion in November 2023 to N75.96 trillion in November 2024.
In November 2024, net domestic credit increased by 91% year over year to N115.6 trillion from N60.5 trillion in the same period in 2023.
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