FG borrowings push money supply to N108.96trn —

According to the Central Bank of Nigeria’s (CBN) Money and Credit Statistics data released this week, Broad Money Supply in Nigeria increased from N72.03 trillion in November 2023 to N108.96 trillion in November 2024.

This growth, which represents a 51% year-on-year (YoY) increase, was primarily driven by domestic borrowings from the private sector.

Broad Money Supply includes cash, demand deposits, savings deposits, money market deposits, and time deposits.

The report also noted that M2, a key measure of money supply, recorded a six-month increase since April 2024. However, this upward trend reversed in October 2024, when M2 declined by 1.5% month-on-month, from N109.4 trillion in September to N107.7 trillion. In November, it rebounded, increasing by 1.2% to N108.96 trillion.

The data further highlighted that the YoY increase in money supply was driven by positive changes across its components.

Quasi money, which includes savings deposits, time deposits, and other near-money assets, also saw a slight increase. The report revealed that Quasi Money grew by 1.96% YoY, rising to N72.7 trillion from N71.3 trillion in November 2023.

Similarly, Demand Deposits increased by 34.4% YoY, reaching N31.6 trillion in November 2024, up from N23.2 trillion in November 2023.

Currency outside banks surged by 50.9% YoY, rising to N4.65 trillion in November 2024, up from N3.08 trillion in November 2023.

Narrow money also saw a significant increase, growing by 38% YoY to N36.3 trillion in November 2024, up from N26.3 trillion in November 2023.

In terms of credit, the CBN reported a 54% YoY increase in credit to the government, which rose to N39.6 trillion in November 2024 from N25.7 trillion in November 2023.

In contrast, credit to the private sector grew by 27% YoY, reaching N75.96 trillion in November 2024, up from N59.7 trillion in November 2023.

This resulted in a 91% YoY rise in net domestic credit, which stood at N115.6 trillion in November 2024, compared to N60.5 trillion in the same period of 2023.