Money supply is an economic indicator of the total number of monetary assets available in a country’s economy at a specific time. Nigeria’s money supply (M3) has grown significantly over the past year, with notable spikes in mid-2023 and early 2024. This report will articulate Nigeria’s current money supply, recent trends, and economic implications.

How Has Nigeria’s Money Supply Evolved in Recent Times?

The chart below outlines Nigeria’s money supply from January 2023 to March 2024:

What Trends Can Be Drawn From Nigeria’s Money Supply?

Analysing the data above reveals several trends in Nigeria’s money supply over the past year and a quarter, viz;

1. Steady Growth in Early 2023: From January to May 2023, the money supply increased gradually from ₦53.1 trillion to approximately ₦56.7 trillion.

2. Significant Spike in Mid-2023: June 2023 saw a substantial jump to ₦64.9 trillion, followed by a steady increase through September 2023.

3. Sharp Increase in Late 2023: Money supply experienced another sharp rise in October 2023, reaching ₦73.9 trillion, and continued to grow, peaking at ₦79.3 trillion by December 2023.

4. Surge in Early 2024: January 2024 witnessed an unprecedented increase to ₦94.6 trillion, with a further rise to ₦95.6 trillion in February 2024.

5. Slight Decline in March 2024: The money supply slightly decreased to ₦92.3 trillion in March 2024, marking a potential stabilisation after rapid growth.

*All data cited in this report were sourced from: 

https://www.cbn.gov.ng/rates/MacroIndicators.asp