FG borrowings push money supply to N108.96tn – CBN
Nigeria's Broad Money Supply increased by 51% year on year to N108.96 trillion in November 2024, driven by domestic private sector borrowings.According to Central Bank of Nigeria's Money and Credit Statistics data released on Monday, Broad Money Supply increased from N72.03 trillion in November 2023 to N108.96 trillion in November 2024.
Cash, demand deposits, savings deposits, money market deposits, and time deposits are all part of the broad money supply.
According to the report, M2 has increased for six months since April 2024.
However, in October 2024, the trend reversed, falling by 1.5% month on month to N107.7 trillion from N109.4 trillion in September. It then rose 1.2% to N108.96 trillion in November.
The report also stated that the YoY increase in the money supply was fueled by positive changes in its components.
Quasi money, which includes savings accounts, time deposits, and other near-money assets, also increased slightly.
The data revealed that Quasi Money increased by 1.96% year on year, reaching N72.7 trillion from N71.3 trillion in November 2023.
Similarly, demand deposits increased by 34.4% year on year, reaching N31.6 trillion in November 2024, up from N23.2 trillion in November 2023.
Currency outside banks increased by 50.9% year on year, to N4.65 trillion in November 2024, up from N3.08 trillion in November 2023.
Narrow money also saw a significant increase, rising 38% year on year to N36.3 trillion in November 2024 from N26.3 trillion in November 2023.
According to the CBN, credit to the government increased by 54% year on year to N39.6 trillion in November 2024, up from N25.7 trillion in November 2023.
In contrast, credit to the private sector increased by 27% YoY, reaching N75.96 trillion in November 2024 from N59.7 trillion in November 2023.
This resulted in a 91% YoY increase in net domestic credit, which totaled N115.6 trillion in November 2024, up from N60.5 trillion in the same period in 2023.
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