Nigeria’s broad money supply rose to a historic high of N93.72 trillion as of January 2024.
This is a milestone increase as the figure represents a 76 per cent surge from the N53.14 trillion recorded in January 2023, indicating a substantial year-on-year growth of N40.48 trillion.
Money Supply increased to N78 trillion in December 2023 from N71 trillion in November of 2023.
Compared to the preceding month of December 2023, which stood at N78 trillion, this represents a 19 per cent increase, equivalent to N14.98 trillion.
This was contained in the Central Bank of Nigeria’s (CBN) comprehensive money and credit statistics.
Nigeria’s broad money supply (M3), a pivotal gauge of economic liquidity, has witnessed and rapid growth in recent years.
Money Supply in Nigeria averaged N16.9 trillion from 2000 until 2023, reaching an all time high of N78 trillion in December 2023 and a record low of N6.4 trillion in January 2000.
Nigeria’s money stock has witnessed a pronounced expansion, a trend that intersects with an array of economic challenges such as rising inflation rates, mounting pressures on the naira’s exchange rate, and a downward trajectory in interest rates.
The rise in money supply could potentially lead to an increase in inflation.