Nigeria Economic Update (Issue 29)

In June 2023, Nigeria’s money supply (M2) reached a record high of N64.3 trillion, increasing significantly by 15 percent (N8.8 trillion) from N55.5 trillion recorded in May, according to the Money and Credit Statistics of the Central Bank of Nigeria (CBN). The money supply represents the total amount of money available in the economy at a specific time, which includes physical currency and various deposits held by individuals, businesses, and institutions in banks and financial institutions. The increase can be attributed to the supreme court’s judgement on the Naira redesign, which permitted the simultaneous use of old and new notes until the end of the year, and a re-evaluation of some dollar-based investments following the liberalisation of the forex market earlier in June.