Driven by domestic borrowings from the private sector, Nigeria’s Broad Money Supply (M2) rose by 51 percent year-on-year, reaching N108.96 trillion in November 2024.
According to the Central Bank of Nigeria’s Money and Credit Statistics data released on Monday, the increase was from N72.03tn in the corresponding period of 2023.
Broad Money Supply (M2) represents cash and demand deposits as well as savings deposits, money market deposits, and time deposits.
According to the report, the M2 recorded a six-month increase since April 2024.
The trend, however, reversed in October 2024, declining month-on-month by 1.5 per cent to N107.7tn from N109.4tn in September 2024, before shooting up again by 1.2 per cent to N108.96tn in November.
The report also showed that the YoY money supply increase followed positive component changes.
Quasi-money, including savings deposits, time deposits, and other near-money assets, also rose marginally.
The data showed that Quasi Money grew by 1.96 per cent YoY to N72.7 from N71.3 trillion in November 2023.
Similarly, Demand Deposits increased by 34.4 per cent YoY to N31.6 trillion in November 2024 from N23.2 trillion in November 2023.
Currency outside banks increased by 50.9 per cent YoY to N4.65 trillion in November 2024 from N3.08 trillion in November 2023.
Narrow money ( M1), also grew massively by 38 per cent YoY to N36.3 trillion in November 2024 from N26.3 trillion in November 2023
According to the CBN, government credit increased by 54 percent year over year to N39.6 trillion in November 2024 from N25.7 trillion in November 2023.
On the other hand, credit to the private sector rose YoY by 27 per cent to N75.96 trillion in November 2024 from N59.7 trillion in November 2023.
This resulted in a 91 per cent YoY rise in net domestic credit of N115.6 trillion in November 2024 from N60.5 trillion in the corresponding period of 2023.
