Bank Deposits Surge by 16.5% Despite Economic Challenges in Nigeria

Despite widespread economic hardship affecting the majority of Nigerians, banks are seeing a significant surge in customer deposits. According to the latest data from the Central Bank of Nigeria (CBN) on the country’s money and credit situation, banks’ demand deposits climbed by 16.5% in the first nine months of 2024, reaching N31.08 trillion by the end of August, up from N26.68 trillion at the end of December 2023.

A detailed breakdown of the report shows that in the first quarter of 2024 (Q1’24), total demand deposits stood at N28.9 trillion—an 8.1% rise compared to December 2023. By the second quarter (Q2’24), bank deposits grew by 14.3%, reaching N33.0 trillion at the end of June.

Additionally, the audited reports and regulatory filings by commercial banks and their holding companies listed on the Nigerian Exchange (NGX) reveal that total deposits in the banking sector surged to approximately N136 trillion in the first half of 2024. This marks an 18.3% increase compared to the N115 trillion recorded in the same period of 2023. For 2023, deposits had jumped by 63% to N115 trillion from N70.5 trillion in 2022, suggesting that individuals and institutions are increasingly holding their assets in cash, likely due to inflationary pressures.

In a related development, the CBN’s latest report also indicates that Nigeria’s money supply (M2) hit an all-time high of N107.1 trillion in August 2024, representing a 0.75% month-on-month (M-o-M) increase from N106.3 trillion in July and a 5.6% rise from N101.4 trillion in June. This sharp rise in liquidity poses challenges for the CBN’s Monetary Policy Committee (MPC) as it continues to balance economic growth with inflation control. Notably, the money supply has increased by 65% year-on-year from N64.8 trillion in August 2023.


Discover more from LN247

Subscribe to get the latest posts sent to your email.

Advertisement

Most Popular This Week

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts

Advertisement

Discover more from LN247

Subscribe now to keep reading and get access to the full archive.

Continue reading