Government deposits with CBN rises 46% to N24.9 trn

Government deposits with the Central Bank of Nigeria,  CBN,   grew   by 46.9 percent year-on-year, YoY, to N24.9 trillion in 2024 from N16.94 trillion in 2023.

This is contained in the recently released Financial Statement of the CBN.

The growth in government deposits reflects the  increase in money supply during the review period.  

Data from the CBN Money and Credit Statistics showed that Money Supply (M²) grew by 42.4 percent YoY to N133 trillion in 2024 from N79.3 trillion in 2024, reflecting the impact of  inflationary pressure.

The period saw the CBN implementing various measures to absorb excess liquidity and manage inflation. 

According to the data, the government deposits comprised deposits in capital and settlement accounts which stood at N14.6 trillion in 2024 rising by 78 percent YoY from N8.2 trillion in 2023.

Deposits in domiciliary accounts rose by 138.6 percent YoY to N8.83 trillion from N3.7 trillion in 2023.

However, government deposits in other accounts fell by 71.6 percent to N1.43 trillion from N5.04 trillion in 2023.

Further analysis of data showed that financial institutions deposits with CBN stood at N27.5 trillion in 2024 with bank reserve accounts’ deposits leading other   accounts with N26.2 trillion rising by 29.7 percent YoY from N20.2 trillion.  

In its latest Money and Credit Statistics,   banks reserves with CBN stood at N28.5 trillion as at March.

The deposit of government and financial institutions resulted in a   total deposit of N52.38 trillion in 2024 representing a 37 percent increase from N38.2 trillion in 2023.