Government deposits with the Central Bank of Nigeria (CBN) rose sharply by 46.9% year-on-year to N24.9 trillion in 2024, up from N16.94 trillion in 2023, according to the recently published CBN Financial Statement.
The surge in deposits reflects a broader expansion in money supply during the period, as the CBN’s latest Money and Credit Statistics report revealed a 42.4% increase in Money Supply (M2), reaching N133 trillion in 2024 compared to N93.3 trillion in the previous year. The rise is largely attributed to persistent inflationary pressures and monetary interventions aimed at managing excess liquidity.
Breaking down the government deposits, the report noted a significant increase in capital and settlement accounts, which rose by 78% year-on-year to N14.6 trillion in 2024 from N8.2 trillion in 2023. Deposits in domiciliary accounts recorded an even steeper climb, rising by 138.6% to N8.83 trillion from N3.7 trillion.
However, not all categories saw growth. Deposits in other government accounts dropped by 71.6%, falling to N1.43 trillion from N5.04 trillion in 2023.
Meanwhile, financial institutions also saw a rise in their deposits with the apex bank. Total deposits by banks and other institutions hit N27.5 trillion in 2024, with bank reserve accounts making up N26.2 trillion—an increase of 29.7% from N20.2 trillion recorded the previous year. As of March 2024, total bank reserves with the CBN had reached N28.5 trillion.
Combined, deposits from both government entities and financial institutions amounted to N52.38 trillion in 2024, reflecting a 37% year-on-year increase from N38.2 trillion in 2023.
The figures highlight ongoing efforts by the CBN to manage inflation through tighter monetary controls and increasing liquidity absorption from the financial system.
