Banks’ credit to the government surged to a record N42 trillion in September 2024, amid a growing money supply (M3).
According to data from the Central Bank of Nigeria (CBN), credit to the government rose by 89.8 per cent year-on-year to reach N42.01 trillion in September 2024, up from N22.13 trillion in September 2023.
This significant increase highlights the growing reliance on bank financing by the government.
On a monthly basis, commercial banks’ credit to the government also recorded a sharp rise. In August 2024, this figure stood at N31.15 trillion but jumped 34.86 per cent by September. This monthly increase shows a rising pattern in government borrowing.
The money supply, measured broadly as M3, rose to N109 trillion in September 2024. This figure represents a 1.68 per cent increase from the N107.19 trillion recorded in August 2024. The CBN data also revealed a year-on-year increase of 62.8 per cent in M3, up from N66.94 trillion in September 2023.
