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
Tax Collected: Tax revenue which has relatively maintained an upward trend, fell considerably in 2015 and dipped significantly in early 2016 on the account of economic downturn, as many businesses sev
Capital Importation: Given the positive outlook on the ITC sector in the past few years, investments in the sector reached a 10-year peak in 2014. However, the foreign investment fell marginally in 2
Capital Importation: Overall capital imported into the manufacturing sector fell deeply in 2015 and has remained low in 2016H1 on the account of present FOREX issues affecting businesses in the sector
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
