Nigeria’s money supply (M2) reached N107.7 trillion in October 2024, marking a 48.3 percent increase compared to N72.6 trillion recorded in the same period in 2023, according to data released by the Central Bank of Nigeria (CBN).
However, on a month-on-month basis, there was a slight decline of 1.5 percent from N109.4 trillion in September 2024.
The CBN report revealed that this year-on-year growth in money supply was driven by significant increases in key components of M2, such as quasi-money, demand deposits, and currency outside banks.
Quasi-money, which includes savings deposits, time deposits, and other near-money instruments, surged by 58 percent, rising to N73 trillion from N46.2 trillion in October 2023.
Demand deposits also showed notable growth, increasing by 46.4 percent to N34.7 trillion in October 2024, compared to N23.7 trillion in the same period last year. Similarly, currency outside banks rose sharply by 59.2 percent to N4.3 trillion from N2.7 trillion a year earlier.
Narrow money (M1) expanded by 31 percent year-on-year, climbing to N34.6 trillion in October 2024 from N26.4 trillion in October 2023.
The rise in money supply was primarily attributed to increased government borrowing. According to the CBN data, credit to the government skyrocketed by 326.5 percent year-on-year, reaching N40.05 trillion in October 2024, compared to N9.39 trillion in October 2023.
