Nigeria’s broad money supply (M²) surged by 48.3% year-on-year (YoY) to reach N107.7 trillion in October 2024, up from N72.6 trillion in the same period in 2023, according to data released by the Central Bank of Nigeria (CBN) on Tuesday.
The CBN’s Money and Credit Statistics report showed that M² had been on a steady rise for six consecutive months since April 2024, but it saw a month-on-month decline of 1.5% in October 2024, dropping from N109.4 trillion in September.
The YoY increase in money supply was driven by significant growth in its components, particularly in quasi-money, which includes savings deposits, time deposits, and other near-money assets. Quasi-money rose by 58% YoY to N73 trillion in October 2024, compared to N46.2 trillion in October 2023.
Demand deposits also saw a strong increase, rising 46.4% YoY to N34.7 trillion in October 2024, up from N23.7 trillion in the previous year. Additionally, currency outside banks grew by 59.2% YoY to N4.3 trillion in October 2024, up from N2.7 trillion in October 2023.
Narrow money (M1) also saw a notable increase, growing by 31% YoY to N34.6 trillion in October 2024, compared to N26.4 trillion in the same month of 2023.
The rise in money supply reflects an increase in government domestic borrowing from the private sector, a trend highlighted in the data. The CBN reported that credit to the government surged by 326.5% YoY to N40.05 trillion in October 2024, up from N9.39 trillion in October 2023.
