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Money supply hits all time high at 56% to N101trn in June

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By Kayode Sanni-Arewa

Money supply (M3), which is a broad measure of the total amount of money in an economy, has surpassed N100 trillion, reaching an all-time high for the country.

Data from the Central Bank of Nigeria (CBN) shows that M3 rose to a record N101.34 trillion in June 2024, represents a 56.15 percent increase to N64.90 trillion recorded in the corresponding period of June 2023.
When the money supply increases, it can lead to higher inflation. As more money chases the same amount of goods and services, prices tend to rise. This means that households might face higher living costs for everyday items, reducing their purchasing power, said a Lagos-based economist.
On a month-on-month basis, money supply increased by 2.11 percent from N99.23 trillion in May 2024. M3 is used by economists to estimate the total amount of money available in an economy, which can influence inflation, interest rates, and overall economic activity.

This is despite the monetary tightening of the CBN. The CBN has issued over N1.5 trillion in Open Market Operation (OMO) bills since Olayemi Cardoso took the helm as governor in a bid to stem inflation and prop up the naira, whose steep decline has unsettled the economy.
“The increased money supply is as a result of the expanded government revenue on the back of the persistent naira depreciation and improved performance of the oil sector,” said Ayokunle Olubunmi, head of financial institutions ratings at Agusto Consulting.

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The Senate and the House of Representatives on Wednesday doubled government’s borrowing limit from the CBN, known as Ways and means, from five percent threshold to 10 percent amid excess liquidity concerns. Ways and Means is provided by the CBN to finance the Federal Government’s budget shortfalls. This facility allows the government to borrow from the CBN to secure short-term or emergency funding for critical projects.

The CBN’s data revealed that currency in circulation (CIC) rose to an all-time high of N4.05 trillion in June 2024. It jumped by 55.77 percent year-on-year from N2.60 trillion in June 2023. Money in circulation increased by 2.27 percent from N3.96 trillion in May 2024.

“While the increase in CIC may suggest improved economic activity in nominal terms and higher consumer spending, it also highlights the risk of inflation, particularly if money supply growth exceeds real output growth,” analysts at FBNQuest said.

According to a report by FBNQuest indicates continued expansion in liquidity despite the Monetary Policy Committee’s (MPC) hawkish measures to tighten liquidity and control inflation.
Latest data from the Nigerian Bureau of Statistics (NBS) shows an inflation rate of 34.2 percent in June 2024, up from 22.8 percent in June 2023.

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According to the data, net credit to the government declined by 10.18 percent to N28.05 trillion in June 2024 from N31.23 trillion in June 2023. On a month on month basis, it dropped by 0.32 percent from N28.37 trillion recorded in May 2024.

Credit to the private sector decreased to N73.12 trillion in one month (June 2024), representing 1.60 percent over N74.31 trillion in May 2024. Against the corresponding period, it rose by 38.46 percent from N52.81 trillion in June 2023

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Ondo Assembly mulls 10-year jail term for land grabbers

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The Ondo State House of Assembly is considering a bill that proposes harsh penalties for land grabbers, including up to 10 years imprisonment for forceful entry or illegal takeover of properties.

Governor Lucky Aiyedatiwa has further reinforced the fight against land grabbing by signing an Executive Order to prohibit such activities.

The order aims to end forceful entry, illegal occupation of landed properties, and fraudulent or violent conduct related to land in the state.

To strengthen enforcement, the governor has established a Task Force to protect property rights, uphold the rule of law, and ensure a secure environment for property owners and residents.

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The proposed bill also includes severe penalties of up to 21 years imprisonment for selling family land without the consent of the family head or secretary.

Hon Moyinolorun Ogunwumiju, the lawmaker representing Ondo West Constituency 1, who sponsored the bill, spoke during a public hearing on the bill

Hon Ogunwumiju assured stakeholders that the bill would improve land administration, protect landowners, attract investors, and foster peace and development in the state.

He explained that the bill sought to regulate land dealings, protect landowners and buyers, penalise encroachers, and criminalise unregistered agents.

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Ogunwumiju said the bill proposed penalties of up to 10 years’ imprisonment for forceful entry or takeover of properties and up to 21 years for selling family land without the consent of the family head or secretary.

Speaker of the Assembly, Hon Olamide Oladiji, urged committee members and stakeholders to ensure the bill served the interests of the people.

He said the bill would maintain order in the state and impose necessary sanctions on offenders.

“Land grabbers pose a significant threat to property acquisition. Their activities ranging from trespassing, forceful occupation, and illegal sales of properties to multiple buyers must be confronted decisively.”

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Majority Leader and Chairman of the House Committee on Rules and Business, Oluwole Ogunmolasuyi,  said the bill, would benefit the society at large

Ondo Commissioner for Justice and Attorney General, Kayode Ajulo said the bill would enhance land administration and complement the executive order signed by Governor Aiyedatiwa.

Stakeholders including traditional rulers  called for full implementation of the bill when signed into law.

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FG earmarks N250bn for Lagos-Abuja rail project in 2025 budget

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The federal government has made an allocation of N250 billion in the 2025 budget for the Lagos–Abuja mass transit rail project.

This budgetary investment is part of a broader plan to revitalize Nigeria’s infrastructure and stimulate economic growth.

The government’s focus on infrastructure development is rooted in the belief that it is a cornerstone of long-term economic planning.

By investing in critical infrastructure such as roads, railways, energy, healthcare, and education, the administration aims to create a conducive environment for both domestic and foreign investment.

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The Lagos-Abuja rail project, in particular, is expected to have a transformative impact on the Nigerian economy.

By improving transportation connectivity between two major economic hubs, the project will facilitate the movement of goods and people, reduce logistics costs, and stimulate economic activity.

Additionally, the project is expected to create numerous jobs, both directly and indirectly, contributing to the country’s overall employment rate.

The government’s infrastructure investments are also aimed at addressing regional disparities.

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By connecting different parts of the country through improved transportation networks, the administration hopes to stimulate economic growth in underserved regions, reduce poverty, and promote equitable development.

The 2025 budget signals the government’s commitment to transforming Nigeria’s infrastructure landscape.

By investing in critical projects like the Lagos-Abuja rail line, the administration aims to lay the foundation for a more prosperous and connected Nigeria.

However, the success of these initiatives will depend on effective planning, efficient implementation, and transparent governance.

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Why we dismissed ex-cop in viral video, by Police

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The Nigerian Police Force (NPF) has disclosed that Vincent Makinde, a former officer seen in a viral video, was dismissed from service as an Inspector in 2022 due to extortion and other serious offences.

This clarification was issued on Wednesday by the Force spokesperson, ACP Olumuyiwa Adejobi, via a statement on his official X account. Adejobi refuted the claims made by Makinde in the video, describing them as misleading.

According to Adejobi, Makinde was dismissed after a thorough investigation and an orderly room trial for offences including abuse of office, extortion, gross misconduct, dereliction of duty, and insubordination.

The police also addressed the viral video showing Makinde in leg restraints, where he claimed to be an Assistant Superintendent of Police (ASP) and alleged unlawful detention.

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The situation has attracted attention, including calls for his release by renowned legal luminary and human rights activist, Mr. Femi Falana, SAN.

The NPF emphasized that Makinde’s dismissal followed due process, countering the narrative he is pushing online.

The police urged the public to disregard the misleading claims and reaffirmed their commitment to upholding discipline and accountability within the force.

“While awaiting the validation of orderly room proceedings and subsequent prosecution, Vincent Makinde assaulted a senior police officer on duty and subsequently escaped from lawful custody,” he said.

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“Around June 2024, he resurfaced, parading himself as a bona fide member of the Nigeria Police Force, adorning the rank of Assistant Superintendent of Police without being previously absolved of his offences or promoted. Being made aware of this, the Police authority issued a directive for his immediate re-arrest.

“The suspect was apprehended while personating himself as an active sworn senior police officer, and armed with a rifle. When approached by police operatives, Vincent Makinde exhibited violent and aggressive behaviour while resisting lawful arrest and detention.

“Upon his arrest, the suspect was restrained using feet restraining devices due to his continuous violent nature coupled with the fact that he had previously escaped from lawful custody in a violent manner.

“The officers deemed it necessary to employ the use of these restraints as a precaution to ensure the safety of the officers on duty, prevent another escape, and secure against any potential harm to him and others around him, that might arise from his aggressive demeanour.

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“It is pertinent to note that the use of restraining devices is a global practice for individuals actively, aggressively, or aggravatedly resisting lawful detention”.

Adejobi said Makinde remains a dismissed police officer, serial criminal, and is currently in custody awaiting conclusion of investigations and prosecution.

The police spokesman added that further investigations have revealed his involvement in several other nefarious acts in addition to those which led to his earlier dismissal.

As such, Adejobi said intensive investigation into the circumstances of his current impersonation offence is also ongoing.

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He added that the Nigeria Police Force remains dedicated to fostering transparency and accountability within its operations, striving to maintain the public’s trust and confidence.

“Through thorough investigations and strict protocols, the Force is steadfast in the pursuit of truth and justice, while ensuring that its personnel who violate the law are held accountable for their actions. This commitment is evident as the Nigeria Police Force continues to work tirelessly to uphold the rule of law and reinforce the integrity of policing.”

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