The amount of money in circulation in Nigeria increased to N53.3 trillion from N52.2 trillion at the start of the year. In comparison to the 0.3% growth reported in the previous month, when the money supply expanded from N53.14 trillion, this marks a 2.2% gain to date.
This is supported by the Money and Credit Figures published on the Central Bank of Nigeria’s (CBN) website over the weekend. Even though the CBN took steps to remove excess liquidity from the banking sector, the money supply increased to its greatest level ever.
According to the M3 report, net foreign assets increased from N4.25 recorded in December 2022 to N5.49 trillion as of the end of February 2023, a 29.3% increase in just two months.
Additionally, the report saidthat credit to the private sector increased by N212 billion or 0.51 per cent Month-on-Month (MoM) in February to N41.75 trillion as against N41.54 trillion reported in January 2023. The apex bank disclosed that credit to manufacturing, general commerce, and oil & gas are key sectors benefiting from private sector lending.