Also, net credit to government fell to N2.980 trillion as at the end of November, lower than the N3.756 trillion it was at the end of October 2018.
This was gathered from the latest Central Bank of Nigeria (CBN) money and credit statistics for November 2018.
Also, narrow money supply (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank dropped to N10.689 trillion at the end of the month under review, as against the N11.241 trillion recorded the previous month.
But currency-in-circulation increased in the review period to N2.100 trillion, compared with the N1.956 trillion it was the previous month.
The data showed that currency outside banks increased to N1.712 trillion as of the review month, up from the N1.602 trillion it was the previous month.
However, while Banks Reserves dropped to N4.306 trillion from the N5.028 trillion it was at the end of October 2018, Quasi Money, which are highly liquid assets other than cash, that can be quickly converted, stood at N14.775 trillion as at the review month, from N14.800 trillion.
In addition, demand deposits, which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution fell marginally from N9.640 trillion the previous month, to N8.978 trillion in the review month.
The credit statistics also revealed that CBN bills held by money holding sectors improved to N6.333 trillion, from N5.984 trillion the previous month. As part of efforts to encourage lending to the private sector, the CBN had introduced the real sector support facility (RSSF). The facility was expected to boost investment and provide low cost funding for businesses.
The activities covered under the scheme are Greenfield (new) and expansion (Brownfield) projects in manufacturing, agriculture and other related sectors approved by the CBN.
In his outlook for 2019, CBN Governor, Mr. Godwin Emefiele, had predicted that monetary policy stance would remain judicious, research driven, adequate and supportive of the real economy subject to underlying fundamentals.
He pointed out that the current tight monetary policy stance was expected to continue in the near-term, especially in view of rising inflation expectations and exchange market pressures.
“Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation.
“Though the CBN has so far managed to maintain exchange rate stability, the current capital flow reversals from emerging markets are expected to continue to exert considerable pressure on market rates.”