The Central Bank of Nigeria (CBN) has reported that Nigeria’s total money supply, known as Broad Money Supply (M2), grew by 51% compared to the same period last year. In November 2024, it reached N108.96 trillion, up from N72.03 trillion in November 2023. This significant increase shows that there is more money circulating in the economy, mainly due to the federal government borrowing more money locally.
Broad Money Supply (M2) is a comprehensive measure of liquidity in the economy. It includes cash, money in checking accounts, savings accounts, fixed-term deposits, and money market accounts. The steady increase in M2 shows how government spending and borrowing to cover budget shortfalls are affecting the economy.
Starting in April 2024, M2 grew steadily for six months in a row. However, in October 2024, it dropped by 1.5% compared to the previous month, falling from N109.4 trillion in September to N107.7 trillion. This decline didn’t last long, as M2 bounced back in November, increasing by 1.2% compared to October, reaching N108.96 trillion.
