Nigeria Economic Chart Park

Money Supply And Lending Rate

Money Supply (Billion )

Rising money supply

Lending Rate (%)

Expensive loans

Money Supply: On a month-on-month basis, growth in M2 have accelerated overtime; reaching over N20,000 billion by April 2016. The rise in M2 at the end of 2016Q1 reflects the fast-paced rise in aggregate domestic credit and other assets relative to pre-2008 period. Similarly, M1 grew sharply at the end of 2016Q1 due to the increase in its demand deposits and currency outside banks components.

Lending Rate: Lending rates co-moves with changes in liquidity and money supply. The gap between maximum and prime lending rates began to widen in 2010; reflecting higher liquidity in the banking system. Both the maximum and prime lending rate trended downwards in 2016Q1 on the account of liquidity ejection in the banking system, at the time.




Related

 

Capital Importation And Budgetary Allocation (Oil And Gas)

Capital Importation: Investment in the oil and gas sector has remained low since 2009. However, investments into the sector fell more deeply in 2015, on the account of persistent global and domestic c

Internally Generated Revenue

Internally Generated Revenue: Total internally generated revenue particularly declined across the 36 states in Nigeria, in 2015. This is attributable to the weak macroeconomic and financial conditions

FDI, FPI And Other Investments

FDI, FPI and other Investments: Portfolio investment has continued to fall rapidly since 2014, while FDI inflows remain subdued since 2010

FDI, FPI And Other Investments 2

FDI, FPI and other Investments: The unusual fall in overall capital importation, especially in equity investment, in the late 2015 and early 2016 is attributable to the tougher macroeconomic and finan