CBN Data Shows Money Supply Above N100 Trillion Amid Cash Scarcity in Banks

• The CBN has revealed that the Nigerian economy has recorded a significant increase in money supply
• In its latest monetary statistics data, the apex bank said the money supply increased by 48.3% as of October
• The CBN has ordered Deposit Money Banks to ensure there is enough cash available for customers in the counter and ATMs

The Central Bank of Nigeria has revealed that Nigeria’s broad Money Supply (M²) increased to N107.7 trillion in October 2024

The October figure represents a 48.3% increase from the N72.6 trillion recorded in the corresponding period of 2023.

CBN disclosed the figures in its latest money and credit statistics data released on its website.

Money supply refers to the total amount of money in circulation in an economy at a given time. It includes cash, coins, and bank account balances, as well as other liquid assets that can be easily converted to cash.

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Vanguard reports that the increase in the money supply was driven by positive changes in its key components, particularly Quasi-money.

Quasi money, comprising savings deposits, time deposits, and other near-money assets, rose by 58% year-on-year to N73 trillion, up from N46.2 trillion in October 2023.

Nigeria’s money supply rises

Demand Deposits also saw a notable increase, rising by 46.4% YoY to N34.7 trillion in October 2024, compared to N23.7 trillion the previous year.

Additionally, currency outside banks grew by 59.2% YoY, reaching N4.3 trillion in October 2024, up from N2.7 trillion in the same month last year.

Narrow money (M1), which represents more liquid forms of money, grew by 31% YoY to N34.6 trillion, compared to N26.4 trillion in October 2023.

The growth in money supply reflects the high level of government domestic borrowing from the private sector, which is evident in the credit data.

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According to the CBN, credit to the government soared by 326.5% YoY, reaching N40.05 trillion in October 2024, up from N9.39 trillion in October 2023.

PoS terminal deployment in Nigeria

Earlier, Legit.ng reported in the Nigeria Inter-Bank Settlement System revealed that the number of Point of Sale (PoS) has been a meteoric rise in the number of POS operators.

The NIBSS noted that the number of machines deployed by merchants and individuals across Nigeria is now over 3.04 million as of July 2024.

This represents a 32% increase year over year compared with the 2.3 million deployed terminals in the same period last year.

Source: Legit.ng