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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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Police declare Ex-President Jonathan’s aide , Reno Omokri wanted

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By Kayode Sanni-Arewa

Reno Omokri, a former Special Assistant to former President Goodluck Jonathan on New Media, has been declared wanted by the Nigeria Police Force (NPF).

His offence: he allegedly defamed Pastor Paul Enenche.

The NPF secured an order from the Chief Magistrate Court of the Federal Capital Territory (FCT), Wuse Zone 6, Abuja to remand him in prison custody along with a former Dunamis Church Pastor, Abraham Daniel, and two others, Enenche Peter and Alexander Enenche.

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The court, presided over by Chief Emmanuel A. Iyanna, issued the remand warrant through an ex-parte motion filed by the Inspector General of Police (IGP), Kayode Egbetokun, on January 13, 2025.

Granting the ex-parte application filed by Francis Gabriel, Esq on behalf of the Police Chief, in Motion No: ME/07/2025 between the Inspector General of Police as Applicant and Daniel Abraham, Enenche Idoga Alexander, Oboyinlo Enenche Peter and Reno Omokri as 1st to 4th Respondents, the Chief Magistrate directed the Police to produce the respondents on return Court date on January 30.

Iyanna held: “Upon hearing the application and submissions of learned Francis Gabriel and upon careful consideration of the averments, the annextures and issues as raised in the submissions of the applicant, the application is hereby granted as prayed.

“It is hereby ordered as follows: An Order of this Honourable Court for remand warrant of the Respondents (i) MR. DANIEL ABRAHAM (ii) MR. ENENCHE IDOGA ALEXANDER (iii) OBOYINLO ENENCHE PETER and (iv) MR. RENO OMOKRI in the custody of the Nigeria Correctional Service, pending investigation, arraignment/prosecution.

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“It is, hereby, ordered that the Respondents be arraigned before a Court of competent jurisdiction after the conclusion of the said investigation.

“On the return date, the Respondents should be produced.

“The matter is adjourned to 30th Day of January, 2025.”

The remand warrant was predicated on a petition to the IGP by Patrick O. Okolo, SAN against Mr Reno Omokri, Gistlover Blog, Aunty Adul, Peter Obonyiro, Kelechi TV and their agents and co-conspirators for alleged defamation of Pastor Paul Enenche.

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Reps Urges Clear Labeling of GMO Products, Demand More Research

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By Gloria Ikibah

The House of Representatives has called on the National Biotechnology Development Agency (NABDA) to ensure the clear labeling of all Genetically Modified Organism (GMO) products in accordance with global standards.

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This House Committee on Science and Technology gave the resolution during a budget defense session, with the Director General, Prof. Abdullahi Mustapha on Thursday in Abuja.

The committee cited the widespread of GMO use in the United States, particularly in maize.

However, committee member Rep. Awaji-Inombek Abiante emphasised the need for transparent labeling, highlighting that Nigerians should have the choice to make informed decisions about the food they consume. He questioned the adequacy of research on GMO products, particularly Tela Maize, before their adaptation in the country.

In addition, Prof. Mustapha presented NABDA’s proposed budget of N5.3 billion for the 2025 fiscal year, which includes N834.4 million for overhead costs and N14.5 million for personnel costs.

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Naijablitznews.com reports that the agency employs around 4,000 staff across its 39 centers nationwide. Other agencies, including the Trypanosomiasis Research Institute, PRODA, NBTI, and NOTAP, also submitted their budgets to the committee.

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NASS Pledges to Increase 2025 Budget for Veterinary Institute and Related Agencies

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By Gloria Ikibah

The National Assembly Joint Committee on Livestock has committed to revise the proposed 2025 budget to provide more support to the Veterinary Institute of Nigeria, recognizing its crucial role in producing vaccines to prevent disease outbreaks nationwide.

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The Chairman, Senate Committee on Livestock, Senator Musa Mustapha, gave the assurance during the institute’s 2025 budget defense session held in Abuja.

Senator Mustapha expressed the committee’s willingness to assist the institute in securing additional resources for vaccine production. Also the Chairman House Committee on Livestock, Rep. Wale Raji, who emphasised the importance of the institute to the Livestock Ministry, urged it to detail the requirements for scaling up vaccine production.

During the session, it was noted that the institute’s 2024 budget allocation was largely spent on diesel for machinery, as its storage facilities require high voltage power.

The committee advised the institute to improve public awareness of its work.

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Director General of the institute, Dr. Maryann Muhammad, raised concerns over the N900 million proposed budget, calling it insufficient given the scale of its operations, including the production of over 40 million vaccine doses in response to disease outbreaks.

Other institutions, including the Federal Colleges of Animal Health and Production Technology in Mubi, Ibadan, and Zaria, also presented their 2025 budget proposals. The Mubi College highlighted its financial difficulties, citing a budget of over N2.7 billion but less than N1 million in revenue for 2024. Despite this, the committee acknowledged that the college is not expected to generate revenue but rather remit a portion of its expenditures.

The committee expressed concerns over the practical training focus of these institutions, stressing the need for students to develop entrepreneurial skills to contribute to the country’s economic growth.

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