Unbelievable Surge: FG Borrowings Drive Nigeria’s Money Supply To N108.96tn, Says CBN

Unbelievable Surge: FG Borrowings Drive Nigeria’s Money Supply To N108.96tn, Says CBN

The Central Bank of Nigeria (CBN) has reported a significant surge in Nigeria’s Broad Money Supply (M2), which rose by 51% year-on-year to N108.96 trillion in November 2024. This increase is driven largely by domestic borrowings…Unbelievable Surge: FG Borrowings Drive Nigeria’s Money Supply To N108.96tn, Says CBN

made by the Federal Government from the private sector.

The latest Money and Credit Statistics, released by the CBN on Monday, show that the Broad Money Supply jumped from N72.03 trillion in November 2023 to N108.96 trillion in the same month of 2024. Broad Money Supply (M2) includes cash, demand deposits, savings deposits, money market deposits, and time deposits.

The report indicates a steady six-month increase in the money supply from April 2024, although there was a slight dip in October 2024, when the total decreased by 1.5% to N107.7 trillion. However, the upward trend resumed in November with a 1.2% rise.

Further analysis revealed that the increase in money supply was bolstered by notable gains in various components. Quasi money, which includes savings and time deposits, increased marginally by 1.96% to N72.7 trillion from N71.3 trillion a year earlier. Demand deposits also saw a sharp 34.4% year-on-year rise to N31.6 trillion in November 2024.

Currency outside banks surged by 50.9% to N4.65 trillion, while Narrow Money (M1) grew by 38% to N36.3 trillion. The data also highlighted a 54% rise in government credit, reaching N39.6 trillion from N25.7 trillion a year earlier, while credit to the private sector grew by 27% to N75.96 trillion.

Overall, net domestic credit saw an impressive 91% year-on-year rise, totaling N115.6 trillion in November 2024 compared to N60.5 trillion in November 2023.

These figures underscore the continuing reliance on borrowing by the Federal Government to boost the nation’s economy, as well as the shifting dynamics of credit distribution within the country.

For More Information And News Update, Join Ireporteronline WhatsApp Channel With Link Below: https://whatsapp.com/channel/0029VaV4jB6DuMRgwqnJCF32 For advertisement inquiries only, kindly send a message to 09010649814 on Whatsapp