Nigeria’s Money Supply (M2) increased by 17.3 percent year-on-year, YoY, to N110.3 trillion in February 2025 from N93.97 trillion in the corresponding period of 2024.
The Central Bank of Nigeria, CBN, disclosed this in its Money and Credit Statistics, released yesterday, which also showed that Credit to the economy fell by 13.4 per cent YoY to N99.4 trillion in February 2025, driven by declines in credit to the government and to the private sector.
According to the data on Money and Credit Statistics, released yesterday by the Central Bank of Nigeria, CBN, the YoY increase in money supply followed positive changes in its components.
Quasi-money, including savings deposits, time deposits, and other near-money assets, rose by 14 percent YoY to N72.7 trillion from N63.7 trillion in February 2024.
Similarly, Demand Deposits increased by 22.8 percent YoY to N33.05 trillion in February 2025 from N26.9 trillion in February 2024.
Currency outside Banks increased by 32 percent YoY to N4.51 trillion in February 2025 from N3.41 trillion in February 2024.
Narrow money (M1), also grew by 21.7 percent YoY to N36.9 trillion in February 2025 from N30.3 trillion in February 2024.
Another major driver of the continuous increase in the Broad Money Supply M2 is the increase in government borrowing from the domestic economy.
According to the CBN, Credit to the Government stood at N26.5 trillion in February. This represents a 21.8 percent YoY decline from N33.92 trillion in February 2024.
But on month-on-month (MoM), Credit to the Government rose by eight percent from N24.5 trillion in January 2025.
Further analysis of the Money and Credit Statistics data showed that Credit to the Private Sector fell YoY by 7.4 percent to N74.9 trillion in February 2025 from N80.9 trillion in February 2024.
Similarly, Credit to the Private Sector fell MoM by 1.6 percent from N74.9 trillion in January 2025.
This resulted in a 13.4 percent YoY decline in Credit to the Economy to N99.4 trillion in February 2025 from N114.8 trillion in the corresponding period of 2024.
