Nigeria’s Money Supply Skyrockets to 106trn in July

Despite the Central Bank of Nigeria’s (CBN) efforts to tighten monetary policy, the country’s money supply (M3) has reached an all-time high of N106.27 trillion in July 2024. This represents a 62.66% increase from the N65.33 trillion recorded in the corresponding period of July 2023.

On a month-on-month basis, the M3 increased by 4.74% from N101.46 trillion in June 2024. The surge in money supply has sparked concerns about potential inflationary pressures, as more money chases a constant amount of goods and services, leading to higher prices.

Currency in Circulation Jumps by 56.18% in One Year

Currency in circulation (CIC) rose to N4.053 trillion in July 2024, representing a 56.18% increase from N2.595 trillion in July 2023. On a monthly basis, CIC increased by 0.12% from N4.048 trillion in June 2024.

Money Outside Banks Drops by 65.61%

Currency outside banks (COBs) declined to N3.66 trillion, representing a 3.43% drop compared to N3.79 trillion in June 2023. On a yearly basis, COBs rose by 65.61% from N2.21 trillion in July 2023.

Credit to Government Declines by 31.19%

Net credit to the government plummeted by 31.19% to N19.006 trillion in July 2024, compared to N27.621 trillion in June 2023. On a monthly basis, it declined from N23.932 trillion in July 2024.

Loans to Private Sector Rise to N75.48 Trillion

Credit to the private sector continued to grow, rising to N75.48 trillion year-on-year in July 2024. This represents a 33.69% increase from N56.46 trillion in the corresponding period of June 2023. On a monthly basis, banks’ credit to the private sector increased by 3.13% from N73.19 trillion in June 2024.

Source: businessday