Macroeconomic Report & Economic Updates

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.

According to the Organisation of Petroleum Exporting Countries (OPEC) in its July 2023 Monthly Oil Market Report, Nigeria’s oil output dropped month-on-month (MoM), to 1.249 million barrels per day (mb/d) in June 2023. This represents a by 5.5 percent increase from 1.184 million mb/d recorded in May 2023. This output falls short of the country’s oil production quota of 1.74 mb/d assigned by OPEC and is also below the 2023 budget target of 1.69mb/d. This is a major source of concern, as the country is faced with challenges regarding revenue generation, with oil, the mainstay of the economy, being underutilised due to lower production levels.

According to OPEC's monthly report on crude oil movement, the price of crude oil dropped significantly in the global market in June. In particular, the OPEC Reference Basket fell by 0.8 percent (63 cents) from $75.82 per barrel in May to $75.19 per barrel. Similarly, the monthly averages for ICE Brent and New
York Mercantile Exchange (NYMEX) Western Texas Intermediate (WTI) dropped from $75.69 per barrel and $71.62 per barrel in May to $74.98 per barrel and 70.27 per barrel, respectively.

The Organisation of Petroleum Exporting Countries (OPEC) reported in its last monthly oil market report that Nigeria produced 1.18 million barrels per day (mbpd) in crude oil for May 2023. This indicates a 185,000bpd increase over the 999,000bpd made in April, based on data from direct communication. Following this improved output, Nigeria has now reclaimed its top spot as Africa's highest crude oil
supplier/producer, toppling Angola by 73,000bpd.

Data released by the Central Bank of Nigeria (CBN), on ‘MoData released by the Central Bank of Nigeria (CBN), on ‘Money and Credit Statistics’ has shown that credit from banks to the government fell in May 2023. The data shows that on a month-on-month basis, banks’ credit to the government fell by N70 billion (0.22 percent) to N30.69 trillion in May 2023 from N30.76 trillion in April 2023. However, credit to the private sector increased MoM by five percent to N44.2 trillion in May 2023 from N43.6 trillion in April 2023ney and Credit Statistics’ has shown that credit from banks to the government fell in May 2023. The data shows that on a month-on-month basis, banks’ credit to the government fell by N70 billion (0.22 percent) to N30.69 trillion in May 2023 from N30.76 trillion in April 2023. However, credit to the private sector increased MoM by five percent to N44.2 trillion in May 2023 from N43.6 trillion in April 2023