₦airaland Forum

Nigeria’s Broad Money Supply (M2) soared by 51% year-on-year (YoY) to reach N108.96 trillion in November 2024, fueled by increasing domestic borrowings by the Federal Government, according to the Central Bank of Nigeria (CBN).

This increase represents a sharp rise from the ₦72.03 trillion recorded in the same period of 2023, according to the Central Bank of Nigeria (CBN)’s Money and Credit Statistics released on Monday.

M2 encompasses cash and demand deposits, savings deposits, money market deposits, and time deposits, serving as a broad measure of liquidity in the economy.

While M2 witnessed sustained growth over six consecutive months from April 2024, the trend briefly reversed in October 2024, declining by 1.5% month-on-month (MoM) to ₦107.7 trillion from ₦109.4 trillion in September. However, the supply rebounded by 1.2% in November, reaching ₦108.96 trillion.

Key Components of the Growth

The YoY surge in Broad Money Supply was driven by positive movements in its core components, highlighting a broader liquidity expansion across various financial instruments:

• Quasi Money: Savings deposits, time deposits, and other near-money assets grew marginally by 1.96% YoY, reaching N72.7 trillion in November 2024 from N71.3 trillion in November 2023.

• Demand Deposits: These increased significantly by 34.4% YoY, climbing to N31.6 trillion from ₦23.2 trillion during the same period.

• Currency Outside Banks: A sharp rise of 50.9% YoY brought this figure to ₦4.65 trillion in November 2024 from N3.08 trillion in November 2023.

• Narrow Money (M1): Reflecting an increase in cash and demand deposits, M1 expanded by 38% YoY, growing to N36.3 trillion from N26.3 trillion in November 2023.

Domestic Credit Growth

The CBN data also revealed a notable increase in credit allocation across the government and private sector:

• Credit to the Government: This rose by a staggering 54% YoY, reaching N39.6 trillion in November 2024 compared to N25.7 trillion in November 2023.

• Credit to the Private Sector: Loans and advances to the private sector increased by 27% YoY, amounting to N75.96 trillion from N59.7 trillion in November 2023.

This combined growth in domestic credit resulted in a massive 91% YoY rise in net domestic credit, which soared to ₦115.6 trillion in November 2024 from N60.5 trillion in the corresponding period of 2023.

The surge in money supply reflects increased government reliance on domestic borrowing to finance fiscal deficits, potentially fueling inflationary pressures. While the rising liquidity supports economic activities, it also stresses the need for balanced fiscal and monetary policies to sustain economic growth without exacerbating inflation.

As the Federal Government continues to grapple with fiscal challenges, experts suggest that a cautious approach is necessary to manage the liquidity expansion and its long-term impact on Nigeria’s economy.

Source: https://nairametrics.com/2025/01/02/money-supply-surges-51-yoy-to-n108-96-trillion-amid-rising-debts-cbn/

ok

See these idiots eh . They have increased money in circulation but they were blaming Emefiele..

Alright

Those who blamed POS people before Christmas for the cash Scarcity, now that there is cash circulation immediately after Christmas, let me ask you, do you still believe it is POS people that made cash to be scarce not CBN?

I just laugh, like who are pos people in the scheme of things that they can even cause Cash scarcity in the whole country

What a evil ways to suffer citizens?
Is this a policy?

With this development, inflation is not slowing down soon.

Excess money in circulation. But there is no cash in bamks unless you buy it from POS. This country is quite strange

What a evil ways to suffer citizens?
Is this a policy?
Our policies are working and watching.
We dey watch

Under Tinubu of course

What is really going on in this country

morikee:
What is really going on in this country

Tinubulation

The inflation no be here...


1m dey hardly last a week now.. ordinary 1 year vaccines for my last kid gulp 154k... Hmm I just dey laff.. not previous or further ones o .. just 1 yr vaccine.


These 'baby steps' wan cripple people o

jmoore:
See these idiots eh . They have increased money in circulation but they were blaming Emefiele..

What are you saying?

I noticed that the CBN is releasing new naira notes this December. The watchdog has done well.

However, they should use this opportunity to gradually withdraw the old notes from circulation until it is totally withdrawn.

It doesn't make sense that Nigeria has two versions of 200, 500 and 1k notes in circulation.

AmazingGenius:
Source: https://nairametrics.com/2025/01/02/money-supply-surges-51-yoy-to-n108-96-trillion-amid-rising-debts-cbn/

Before you know it, Cardoso will want to increase the interest rate again. He has to be the dullest CBN Governor in the entire history of Nigeria.

Most of people commenting do not know what anything, just to comment.

The guru economist who tamed the atlantic ocean according to raving lu"na"ti " cs

wat a waste of a failure

Wait

So after subsidy removal and devaluation of the naira and the much touted increased allocation, the federal govt is still borrowing through ways and means?

What did Buhari do wrong again according to zombies?

And they said they are carrying out reforms

We need dollar to be 2500 asap
That's kuku the dreams and aspirations of APC
They double down from the subsidy gone disaster inauguration speech
Imagine pumping naira from 750 to 1700......within one year....it's safe and logical to expect 2500 anytime soon and 3000 before the calamity of a president is eventually booted out come 2027

omonla555:
Most of people commenting do not know what anything, just to comment.

Are you not commenting because you are ignorant of what is being discussed

PeterObi4Presid:
We need dollar to be 2500 asap
That's kuku the dreams and aspirations of APC
They double down from the subsidy gone disaster inauguration speech
Imagine pumping naira from 750 to 1700......within one year....it's safe and logical to expect 2500 anytime soon and 3000 before the calamity of a president is eventually booted out come 2027

If Pandora Bitter Obi runs again and secures almost 100% Igbo votes, then we are doomed for another four years of ebilokan hunger, poverty, unemployment, corruption, suffering, starvation and stampede deaths.

jameshankss:
Anambra State Governor, Professor Chukwuma Soludo, has said he is sure the candidate of Labour Party (LP), Mr Peter Obi, would lose the 2023 presidential election. Soludo said he would not submit to the bullying of Obi’s supporters, who recently descended on him for addressing issues in the state.

The governor made the comments in a lengthy write-up personally authored, with the title, “History Beckons, and I Will Not Be Silent (Part 1).”

Soludo said Obi was inadvertently making the pathway to victory much easier for the presidential candidate of All Progressives Congress (APC), Bola Tinubu, and at the same time, toying with the destiny of millions of Ndigbo.

But the chief spokesperson for the Labour Party Presidential Campaign, Yunusa Tanko, accused Soludo of being sponsored by some unknown persons to weaken the base of the party in the South-east.

The former CBN governor had been under intense attack for close to a week for dismissing Obi’s investment in the state as amounting to nothing, during a television interview.

Soludo said in the write-up, “My attention has been drawn to some of the tirades on social media following my frank response during an interview on Channels TV regarding the ‘investments’ Mr. Peter Obi claimed to have made with Anambra State revenues.

“Sadly, several of the comments left the issue of the interview to probe or suggest motives, inferred from my response on ‘investment’ that I am opposed to Peter Obi’s ambition and, therefore, committed a ‘crime’ for which the punishment is internecine abuse and harassment, even to my family.

“Everyone knows that I don’t follow the winds or one to succumb to bullies, or shy away from a good fight especially, when weighty matters of principles and future of the people are involved.”

Soludo said he had urged Obi to return to his former party, the All Progressives Grand Alliance (APGA), to actualise his presidential bid. He added that he had always told the LP candidate to his face that he was not capable of winning the 2023 presidential election, especially, under LP, which had neither a councillor nor a local government chairman.

Soludo said Obi was not just his friend, but also his brother, but despite that, they have their political differences.

He stated, “For full disclosure, let me state that Peter Obi and I are not just friends, we call ourselves ‘brothers’. But we have political differences: he left APGA for PDP after his tenure as governor, while I have remained in APGA since 2013.

“During the last two governorship elections in Anambra in 2017 and 2021, he led the PDP campaigns but APGA won landslide in both elections. By the way, in 2016, he visited and proposed that I defect to PDP and contest the 2017 election against the incumbent Willie Obiano, but I declined.

“After my victory in November 2021, he called to congratulate me, as I did to him in 2010. That is the Anambra way: we fight fiercely during campaigns but share drinks at the next social events. After all, it was the Great Zik of Africa, who taught us that in politics, there are no permanent friends or permanent enemies but only permanent interests.”

Arguing that Obi’s presidential bid would only work in favour of Tinubu, Soludo said, “Indeed, if I were Asiwaju Tinubu, I would even give Peter Obi money as someone heading one of the departments of his campaign, because Obi is making Tinubu’s pathway to victory much easier by indirectly pulling down PDP.”

Obi, according to Soludo, would only deplete the votes of the Peoples Democratic Party (PDP) and pave the path for an APC victory.

He stated, “The current fleeting frenzy, if not checked, will cost Ndigbo dearly for years. The South-east has the lowest number of votes of any region, but it is also the only region where the presidential race might be a four-way race (it is a two-way race in the other five regions) thereby, ensuring that our votes won’t count in the making of the next president of Nigeria.

https://www.thisdaylive.com/index.php/2022/11/15/soludo-i-wont-succumb-to-bullies-obi-knows-he-cant-win/

I don't believe we have this kind of money in circulation. The realties is different. Even if Inflation dey, people suppose to have more cash at hand but the realities is different. Who are holding this cash. Bank no gree release money.
What's going on sef

Is this how this clueless President wants to reduce inflation to 15%

E e e e, it's well oooo

Anything you see agbado hyping watch that thin collapse immediately. As proof bookmark this post and see what will happen to naira next week

Time to unveil N2,000 note

Emeskhalifa:
Those who blamed POS people before Christmas for the cash Scarcity, now that there is cash circulation immediately after Christmas, let me ask you, do you still believe it is POS people that made cash to be scarce not CBN?

I just laugh, like who are pos people in the scheme of things that they can even cause Cash scarcity in the whole country

sir, POS operators can and actually caused the scarcity.

If for instance we have 5m POS operators, and each holding physical cash of 2m, multiply 5m x2m. This is a litmus test of the money hoarded or kept out of the system.

Mandate1:
sir, POS operators can and actually caused the scarcity.

If for instance we have 5m POS operators, and each holding physical cash of 2m, multiply 5m x2m. This is a litmus test of the money hoarded or kept out of the system.

I will only agree with your assumption only if the POS operators we have in the country are upto 5m mind you I mean pos operators, not same pos operators with multiple locations.

Secondly I can confidently tell you that majority of the pos outlets you see littered around the country do not have working capital up to 500k.