CBN explains as currency in circulation in Nigeria hits N64.3 trillion in a month

The Central Bank of Nigeria has revealed that the money supply in Nigeria spiked to N64.3 trillion in June 2023, the highest ever recorded in Nigeria.

The amount contrasts with the N55.5 trillion recorded in May, a massive N8.8 trillion increase.

Current amount may drive up inflation

The Data is from the Central Bank of Nigeria, which revealed development in its credit statistics.

Money supply refers to the total amount available in an economy at a particular time.

The amount includes physical currency, such as coins and banknotes, and various deposits held by individuals, businesses, and institutions in banks.

It is also essential for assessing interest rates and inflation in a given period.

The current increase in money supply comes amid reports of rising inflation in Nigeria which the National Bureau of Statistics said now stands at 22.79%.

Analysts expressed concerns that with the current amount of money in circulation, inflation may hit 23% for July.

Investment banker and financial analyst Maureen Adeyemi told Legit.ng that the situation is not looking very pretty for the economy as there is so much money chasing fewer goods.

Analysts asks CBN to mop up more money

“The situation is not good at all. The development is a harbinger of inflation. The money there is in a system, it is more likely to breed inflation,” Maureen said.

She asked that the apex bank mop up more money to stabilise the price of goods and services in the country.

“With the current inflation rate, Nigeria cannot afford to risk it exceeding its current rate,” she said.