Nigeria’s money supply rises by 62% to N108.9tn as govt spending surges

Nigeria’s money supply (M3), which indicates a rise in liquidity, government spending, has grown by 62.8 percent year-on-year (YoY) in September 2024 to N108.95 trillion amid the Central Bank of Nigeria’s interventions.

Recent data from CBN showed that the country’s M3 surged to N108.95 trillion in September 2024, compared to N66.94 trillion in the same month last year.

Similarly, on a month-over-month (MoM) basis, the money supply rose by 1.6 percent from N107.19 trillion in August 2024.

Recall that the Governor of CBN, Yemi Cardoso, at a press briefing at the end of the 297th Monetary Policy Committee (MPC) meeting in Abuja, confirmed the growth in liquidity despite tightening measures.

However, it called for the need for vigilance to prevent inflationary pressures from worsening.

He said, “The MPC noted the continued growth in money supply, recognizing the need to curtail excess liquidity in the system as well as address foreign.”.

Recall that in September, Nigeria’s inflation rose to 32.70 percent; this comes as the cost of living in the country continued to worsen.

The Executive Director of the Center for the Promotion of Private Enterprise, Muda Yusuf, had advocated for a cut in government spending to tackle rising liquidity.

BudgIT’s recent state of states report said all 36 states of Nigeria spent N9.78 trillion in the 2023 fiscal year, a 21 percent rise from N8.07 trillion spent in the previous year.