The Budget Office of the Federation says Nigeria’s money supply rose to ₦109.41 trillion in December 2024, reflecting a 3.6 percent increase from the ₦105.49 trillion recorded in September. The data, contained in its fourth-quarter budget implementation report, shows continued expansion in monetary aggregates during the review period.
The report also noted a decline in Net Domestic Assets, which fell by 3.26 percent to ₦81.39 trillion, driven mainly by adjustments in domestic credit. Net Domestic Credit dropped by 8.75 percent, from ₦115.25 trillion in September to ₦105.16 trillion at the end of December.
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According to the report, credit to the federal government decreased significantly by ₦12.3 trillion, or 31 percent, while credit to the private sector grew modestly by 2.95 percent to ₦78.02 trillion. The decline in government borrowing was partly offset by increased private sector lending during the period.
Meanwhile, Central Bank Governor Olayemi Cardoso recently revealed that Nigeria’s money supply expanded by ₦35 trillion between 2015 and 2023 due to ways and means financing. To curb excess liquidity, the CBN has introduced a 75 percent cash reserve ratio on non-Treasury Single Account public sector deposits to strengthen monetary control.
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