Nigeria’s Broad Money Supply (M2) has risen by 51% year-on-year (YoY) to ₦108.96 trillion in November 2024, driven by the Federal Government’s domestic borrowings from the private sector, according to data from the Central Bank of Nigeria (CBN).

The CBN’s Money and Credit Statistics report, released on Monday, indicates an increase from ₦72.03 trillion recorded in November 2023. Broad Money Supply (M2) includes cash, demand deposits, savings accounts, money market instruments, and time deposits.

The data reveals that M2 had been increasing steadily since April 2024 but recorded a temporary decline in October, falling 1.5% month-on-month to ₦107.7 trillion from ₦109.4 trillion in September. It rebounded in November, increasing by 1.2% to ₦108.96 trillion.

Year-on-year growth in M2 was attributed to positive changes in its components:

• Quasi Money, which includes savings deposits, time deposits, and other near-money assets, rose marginally by 1.96% YoY to ₦72.7 trillion, up from ₦71.3 trillion in November 2023.
• Demand Deposits surged by 34.4% YoY to ₦31.6 trillion in November 2024, compared to ₦23.2 trillion in November 2023.
• Currency Outside Banks increased by 50.9% YoY to ₦4.65 trillion, up from ₦3.08 trillion in November 2023.

Narrow Money (M1) also saw significant growth, rising 38% YoY to ₦36.3 trillion in November 2024, compared to ₦26.3 trillion in the corresponding period of 2023.

The CBN reported that credit to the government increased by 54% YoY to ₦39.6 trillion in November 2024, up from ₦25.7 trillion a year earlier. Credit to the private sector also rose by 27% YoY to ₦75.96 trillion, compared to ₦59.7 trillion in November 2023.

This growth in government and private sector credit led to a 91% YoY increase in net domestic credit, which rose to ₦115.6 trillion in November 2024, up from ₦60.5 trillion in the same period of 2023.