The Central Bank of Nigeria’s (CBN) recently released Money and Credit Statistics reveal significant growth in the country’s financial indicators, with the Broad Money Supply (M2) increasing year-on-year (YoY) to ₦108.96 trillion in November 2024. This marks a sharp rise from ₦72.03 trillion in November 2023.
Trends in Broad Money (M2)
M2, which includes cash, demand deposits, savings deposits, and time deposits, recorded consistent growth over six months since April 2024. While it briefly declined in October 2024 by 1.5% to ₦107.7 trillion from ₦109.4 trillion in September, it rebounded in November with a 1.2% increase to ₦108.96 trillion.
Breakdown of Key Indicators
The report highlights significant YoY changes across several financial components:
Quasi Money: Savings deposits and other near-money assets grew by 1.96%, reaching ₦72.7 trillion from ₦71.3 trillion in November 2023.
Demand Deposits: Saw a robust 34.4% increase, climbing to ₦31.6 trillion from ₦23.2 trillion.
Currency Outside Banks: Jumped by an impressive 50.9% to ₦4.65 trillion, up from ₦3.08 trillion.
Narrow Money (M1): Grew significantly by 38%, rising to ₦36.3 trillion from ₦26.3 trillion.
Read also
- Nigeria to champion fair, inclusive global financial system as it assumes G-24 leadership
- NSDC launches outgrower programme to boost local sugar production, rural incomes
- Artistic Pulse Festival to spotlight Nigeria’s creative industry, sustainable innovation
- NACCIMA pushes stronger Nigeria–China partnership for SME growth
- NSDC rolls out sugarcane support scheme for agripreneurs
Credit Expansion
The CBN report also highlighted substantial credit growth in both public and private sectors:
Credit to Government: Increased by 54% YoY to ₦39.6 trillion from ₦25.7 trillion.
Credit to Private Sector: Grew by 27% YoY, reaching ₦75.96 trillion from ₦59.7 trillion.
This surge in credit resulted in a staggering 91% YoY increase in net domestic credit, which hit ₦115.6 trillion in November 2024 compared to ₦60.5 trillion in the same period of 2023.
Implications for SMEs and the Economy
The expanding money supply and credit availability reflect a growing confidence in Nigeria’s financial system. With increased access to credit, businesses, especially SMEs, are positioned to benefit from enhanced funding opportunities.
The rise in demand deposits and narrow money suggests improved liquidity, while the surge in public and private sector credit underscores the government’s commitment to economic growth and development.
The CBN’s data paints an optimistic picture of Nigeria’s financial landscape, signaling opportunities for increased investment, industrial growth, and enhanced economic activities in 2025.
Discover more from SMALL BUSINESS INSIGHTS
Subscribe to get the latest posts to your email.
