Nigeria’s money supply rose 48.3% year-on-year to N107.7 trillion in October 2024, up from N72.6 trillion in the same period in 2023, according to the Central Bank of Nigeria (CBN). Despite consistent increases since April 2024, the trend reversed in October with a 1.5% month-on-month decline from N109.4 trillion in September. Components of the money supply, including quasi-money and demand deposits, contributed significantly to the year-on-year growth.
Quasi-money, encompassing savings and time deposits, surged by 58% year-on-year to N73 trillion, while demand deposits grew by 46.4% to N34.7 trillion during the same period. Currency outside banks also saw a notable increase of 59.2%, reaching N4.3 trillion in October 2024. Narrow money (M1) rose by 31% year-on-year to N34.6 trillion, further underscoring the liquidity expansion in the economy.
The sharp rise in money supply is attributed to increased government borrowing, with credit to the government soaring by 326.5% year-on-year to N40.05 trillion in October 2024, compared to N9.39 trillion in October 2023. This development reflects the growing domestic reliance on private sector funding to meet fiscal needs, highlighting the impact of credit trends on Nigeria’s economic dynamics.
