Nigeria’s money supply, M2 increased by 65 percent on a year-on-year basis to N107.1 trillion in August 2024
This is according to the Central Bank of Nigeria’s recently released data.
This showed that M2 rose by 0.75 percent month-on-month from N106.3 trillion recorded in July 2024.
Also on a year-on-year basis, the N107.1 trillion rise in M2 represents an N65 percent increase from the N64.8 trillion recorded in a corresponding period last year.
Reacting to the rise in M2, the CBN Monetary Policy Committee in its 297th meeting held last week unanimously voted for a 50 basis point increase in the Monetary Policy Rate (MPR), raising it to 27.25 percent.
The interest rate hike was accompanied by an adjustment to the Cash Reserve Ratio (CRR) of Deposit Money Banks, which was hiked by 500 basis points to 50.00 percent, while Merchant Banks saw an increase of 200 basis points to 16 percent. This comes as the apex bank retained other monetary policy parameters.
Despite the rise in M2, CBN Governor Olayemi Cardoso announced a plan to inject another N1.4 trillion into the country’s financial sector to boost liquidity.
