Nigerians Save N75.65 Trillion in Quasi-Money Amid Economic Uncertainty, CBN Reports
Amid ongoing economic challenges, Nigerians have increasingly turned to savings and low-risk financial instruments, as evidenced by the Central Bank of Nigeria’s (CBN) latest data. The report, which covers March 2025, shows that quasi-money—assets easily converted into cash—has surged to N75.65 trillion. This marks a 3.65% rise from the previous month and a 26.42% increase compared to March 2024. The trend reflects a growing preference for preserving capital, with both households and businesses seeking safe, interest-bearing financial products amidst the country’s economic slowdown.
Quasi-money, which includes savings deposits, fixed-term deposits, and other liquid assets, now makes up a significant portion of the economy’s money supply. Analysts attribute this increase to the rising inflationary pressures and volatile market conditions, alongside an ongoing trust in formal financial institutions. According to experts, the shift towards such assets is a defensive strategy by savers looking to avoid risk during uncertain times.
The CBN’s tight monetary policies, including high interest rates designed to curb inflation, have made fixed-income securities like treasury bills increasingly attractive to investors. In January 2025, a CBN auction for 364-day treasury bills was oversubscribed by N1.47 trillion, with stop rates reaching 22.6%. This demonstrates continued demand for secure, high-yield investment options. The central bank’s data also shows that broad money supply (M2) grew by 23.69% year-on-year, with quasi-money playing a dominant role in this expansion.
While the surge in savings and quasi-money is seen as a sign of financial system deepening, driven by digital banking and formal financial efforts, experts caution that over-reliance on low-risk assets could dampen economic dynamism in the long run. The increase in savings could potentially lead to stronger capital pools for lending once macroeconomic stability is restored, but for now, Nigerians appear focused on financial stability rather than speculative investments.
Source: The sun