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Nigeria’s money supply hits N95.56 trillion in Feb 2024 despite MPC’s tightening stance 



Nigeria’s broad money supply (M3) has surged to a new historic high of N95.56 trillion as of February 2024 despite the hawkish tightening stance of the Monetary Policy Committee (MPC). 

This figure represents a staggering 79.29% surge from the N53.3 trillion recorded in February 2023, showcasing a substantial year-on-year growth of N42.26 trillion. 

Moreover, compared to the preceding month of January 2024, which stood at N93.72 trillion, this represents a 1.96% increase, equivalent to N1.84 trillion. The Central Bank of Nigeria (CBN) revealed this data in its latest money and credit statistics.  


The trajectory of Nigeria’s broad money supply (M3), a pivotal gauge of economic liquidity, has been on an undeniable upward trajectory, surging at an accelerated pace in recent years. M3 encompasses both net foreign assets and net domestic assets, painting a holistic picture of the nation’s monetary dynamics.   

Ms. Emem Usoro, Deputy Governor, Operations Directorate, in her personal statement at the previous MPC meeting in January 2024 noted that: 

She also said that inflationary pressures may persist in the near term partly due to a number of factors, such as the lingering impact of PMS adjustments, import costs, exchange rate passthrough, and growth in money supply. 

The uptick in the money supply portends a potential surge in inflation, posing a significant threat to the purchasing power of Nigerians. Moreover, an inflated money stock typically correlates with a decline in interest rates, particularly in environments characterised by a dearth of viable investment prospects.  

This dynamic may render Nigerian investment vehicles less attractive to global investors, a matter of grave concern considering Nigeria’s imperative for sustained dollar inflows.