Nigeria’s money supply (M3) surged by 62.8% year-on-year to ₦108.95 trillion in September 2024, influenced by increased liquidity and government spending, per recent CBN data.
This is up from ₦66.94 trillion a year earlier.
Month-over-month, M3 rose by 1.6% from ₦107.19 trillion in August. CBN Governor Yemi Cardoso highlighted this growth in liquidity at the 297th Monetary Policy Committee meeting, emphasizing the need for vigilance to prevent inflation from rising further.
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.”.
Nigeria’s inflation rate rose to 32.70% in September, worsening the cost of living.
Muda Yusuf, Executive Director of the Center for the Promotion of Private Enterprise, advocated for reduced government spending to control rising liquidity.
In alignment with this, BudgIT’s recent report shows that Nigeria’s 36 states spent ₦9.78 trillion in the 2023 fiscal year—a 21% increase from ₦8.07 trillion in 2022.
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