According to the Central Bank of Nigeria (CBN), Nigeria’s money supply, referred to as M2, reached N66.42 trillion in September 2023. This represents a marginal increase of about 1.94% from N65.15 trillion in August 2023. The data was recently released by the CBN as part of its money and credit statistics.
The M2, which measures the total amount of money available in the economy at a specific time, has experienced a notable increase of approximately 25.70% or N13.58 trillion over the course of nine months in 2023.
To provide some context, in January 2023, the CBN reported that the money supply was at N52.84 trillion, gradually increasing to N52.92 trillion in February. By April 2023, it crossed the N55 trillion mark, reaching N55.65 trillion. In May, there was a slight decline, resulting in N55.55 trillion.
June and July 2023 saw the M2 closing at N64.36 trillion and N64.93 trillion, respectively. It’s important to note that M2 encompasses physical currency like coins and banknotes, along with various types of deposits held by individuals, businesses, and institutions in banks and other financial entities.
The data also revealed fluctuations in specific components of the money supply, such as demand deposits, quasi-money, and currency outside banks.
