The Central Bank of Nigeria's (CBN) Money and Credit Statistics reveal that money supply (M3) rose to N99.23 trillion in May 2024.This is a 2.3% (N2.26 trillion) month-on-month increase from N96.97 trillion recorded in April 2024 and a 78.1 percent (N43.54 trillion) year-on-year increase from N55.69 trillion recorded in May 2023. A 23% surge in net domestic assets from N68.24 trillion in April 2024 to N83.9 trillion in May 2024 is responsible for this increase. Net domestic assets also accounted for 84.5 percent of the total money supply. Although the increase in money supply is a strong stimulus to economic growth, it could limit the effectiveness of the central bank's efforts to curtail inflation through an increment in the Monetary Policy Rate (MPR). With an increase in the money supply, the purchasing power of consumers is eroded as the inflation rate persists and stands at 33.95% in May 2024. It is pertinent for the government to tame the rate of increase in money supply and implement policies that boost economic output. This can involve policies aimed at improving productivity, supporting key sectors such as agriculture and manufacturing, and encouraging investments in infrastructure. In tandem with these, the Central Bank of Nigeria (CBN) should consider adopting tightening measures such as open market operations (OMO) while monitoring the net domestic assets (NDA) to ensure that they are within the desired limit

According to the NBS National Agricultural Sample Census report, roughly 40.2 million agricultural families in Nigeria participate in various agricultural activities. According to the survey, 91% of agricultural households cultivated crops, with 35% focusing solely on crop cultivation and 48% raising livestock

The Consumer Price Index (CPI) and Inflation Report of the National Bureau of Statistics (NBS) for May 2024 shows that inflation increased to 33.95 percent. This represents a 0.26 percentage point increase from the 33.69 percent recorded in April 2024. On year-on-year basis, the inflation rate increased by 11.54 percentage points, compared to 22.41 percent recorded in May 2023.

Youth unemployment and gender inequality are some of the key development challenges across Africa today

According to the National Bureau of Statistics (NBS) report on value-added tax (VAT), in Q1 2024,
Nigeria realised N1.43 trillion in revenue from VAT,representing a quarter-on-quarter growth rate of 19.21% from N1.20 trillion recorded in Q4 2023. Year-on-year, VAT doubled from N709.6 billion in Q1 2023,highlighting significant tax revenue growth, which indicates a rebound in economic activities. Also, the growth suggests expansion in VAT collection and an increase in the average prices of goods and services.

In May 2024, oil production in Nigeria dropped by 30,000 barrels per day (bpd) to 1.25 million bpd, according to OPEC's latest report. This decline puts Nigeria even further behind OPEC's 2024 production quota of 1.38 million bpd and the Federal Government's budgeted benchmark of 1.78 million bpd. This is in addition to the slight drop in the global oil price to $80.96 per barrel, presenting a more challenging situation for the country from both revenue and foreign reserves perspectives.

This brief examines the potential impact of a minimum wage increase in Nigeria, taking into account the current economic state and the factors driving inflation. It also provides a minimum wage recommendation to guide the government and labor unions in reaching a realistic minimum wage.

This snapshot for June 2024 provides trends, and insights on key macroeconomic indicators such as Inflation, foreign reserves, currency in circulation and crude oil prices.

There is a consensus among policymakers in Africa that high unemployment, especially among youth, is a major impediment to inclusive growth. A recent Afrobarometer survey (Round 9) underscores this concern, revealing that 40 percent of African youth identify unemployment as the primary issue that governments should address. In response, regional and national policies, such as the Job for Youth in Africa program (2016-2025), have been designed to tackle the unemployment problem. However, labor statistics on the continent indicate a more complex situation, where the quality of jobs is a greater concern than their quantity. Quality or decent jobs refers to employment that is "fair, dignified, stable, and secure", as opposed to vulnerable employment. Current estimates place the unemployment rate on the continent at 11.6%, while vulnerable employment reaches as high as 80% in several countries.

This brief was written by Adedeji Adenira PhD , Chukwuma Nwofor and Halimat Abdulrazaq