By Munachimso Obienyi
Despite multiple interest rate hikes implemented by the Central Bank of Nigeria (CBN), the money supply in the economy is at its highest level on record, at almost N49.3 trillion in August, topping the previous record set in May 2022.
This means that money supply is now at a 9.9 per cent gain from December 20, 2021, when the country recorded N44.4 trillion.
This is according to data obtained by NwafoLive from the apex bank on the country’s money supply.
A country’s money supply is a crucial factor in whether or not inflation develops, and Nigeria’s money supply is at an all-time high. The amount of money in circulation has grown over time, owing largely to the CBN’s low-interest policy implemented to stimulate economic growth.
The CBN at its last monetary policy committee meeting, explained the growth in money supply was due to an increase in net domestic assets.
“The Committee noted that broad money supply (M3) grew by 11.05 per cent in August 2022, compared with 8.66 per cent in July adding that this was driven largely by the growth in Net Domestic Assets (NDA) of 26.19 per cent in July 2022, compared with 22.78 per cent in the preceding month.
