Banks’ net domestic credit to the economy has increased by 11% month over month, or N84 trillion, from N75.49 trillion in May.
According to Vanguard, the breakdown from the Central Bank of Nigeria’s Money and Credit Statistics published yesterday shows that the private sector took N52.8 trillion, representing a 17.9% increase from the N44.78 trillion it brought in in May 2023.
Statistics also reveal that throughout the period, credit to the government increased by 1.6 percent, from N30.7 trillion to N31.2 trillion.
The report additionally stated that the amount of money in circulation increased MoM by 4.0 percent to N2.6 trillion in June from N2.5 trillion in May.
Currency outside of banks, which increased by 4.15 percent to N2.26 trillion from N2.17 trillion in May, likewise showed an increasing trend.
Since the Supreme Court ruled in February 2023 that the old N200, N500, and N1,000 will remain legal tender through December 31, 2023, both CIC and cash held outside of banks have increased.
When the CBN releases money into circulation, it is intended to be used, and after some time, it is returned to the CBN, keeping the amount of money in circulation firmly under the CBN’s control.
The top bank recovered around N1.9 trillion into its vaults while implementing the redesign of the naira, leaving about N900 billion CIC.
