Currency In Circulation Hits N5.015 Trillion, As Cash Outside Banks Soars

• The Central Bank of Nigeria (CBN) has applied several policies in the last two years to control inflation
• Part of the measures include mopping up excess cash in supply and reducing the money in circulation
• Despite the decline in inflation recorded earlier in the year, the latest data shows that the economy is expanding again

Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

Currency in Circulation (CIC) in Nigeria rose again in May 2025, indicating increased economic activity or sustained inflation.

From N5.003 trillion reported in April 2025, it rose by 0.24% to N5.015 trillion in May 2025, according to the data from the Central Bank of Nigeria (CBN).

This mild growth shows that the CBN’s attempt to mop up excess money supply and curb inflation may not have yielded the desired results yet, as liquidity continues to build up.

The CBN data also shows that currency outside the deposit-taking financial institutions has increased by 1.38% from N4.57 trillion in April 2025 to N4.63 trillion in May 2025.

The cash outside the banks now accounts for 92.4% of the total currency in circulation, up from 91.3% in April 2025.

Compared to May 2024, when Currency in Circulation was N3.97 trillion, and cash outside the bank was N3.71 trillion, both parameters have grown by 26.2% and 24.8% respectively.

When did the Cash in circulation start increasing?

According to This Day news, the latest increase is only a continuation of the upward trend observed since June 2024.

CIC rose from N4.05 trillion in June and July 2024 to N4.14 trillion in August, N4.31 trillion in September, and N4.55 trillion in October 2024.

By November and December 2024, it had reached N4.88 trillion and N5.44 trillion.

Cash outside the banks also grew from N3.67 trillion in July 2024 to N3.87 trillion in August, N4.02 trillion in September, and N4.29 trillion in October 2024.

By November 2024, it peaked at N4.65 trillion outside the banking system. Note that there was cash scarcity when major banks set withdrawal limits for customers.

Nigeria’s economy stabilizes as cash in circulation declines

By January 2025, the economy appeared to have stabilized, with inflation declining and the results visible in the CBN data.

CIC dropped to N5.24 trillion in January, N5.03 trillion in February, and N5.003 trillion in March 2025.

The latest increase in currency in circulation might mean that the money supply is gradually outpacing economic activities.

Naira in Circulation Reduces as CBN Stabilises FX Market

In related news, the total value of naira in circulation fell from N5.04 trillion in February 2025 to N5 trillion as of March 2025.

This was a result of CBN controlling the quantity of money in circulation as one way to maintain economic stability and reduce inflationary pressures.

Legit.ng reported that the special intervention reserves remained steady at N284.36 million for the first three months of 2025.

Source: Legit.ng