CBN reveals how much money is in circulation, as cash outside banks rises again

• The Central Bank of Nigeria (CBN) has applied respective policies successful the past 2 years to power inflation
• Part of the measures see mopping up excess currency successful proviso and reducing the wealth successful circulation
• Despite the diminution successful ostentation recorded earlier successful the year, the latest information shows that the system is expanding again

Ruth Okwumbu-Imafidon, a writer with Legit.ng, has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.

Currency successful Circulation (CIC) successful Nigeria roseate again successful May 2025, indicating accrued economical enactment oregon sustained inflation.

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

This mild maturation shows that the CBN’s effort to mop up excess money proviso and curb ostentation whitethorn not person yielded the desired results yet, arsenic liquidity continues to physique up.

The CBN controls the currency successful circulation arsenic a mode to curb inflation. Photo credit: CBN, Nurphoto
Source: Getty Images

The CBN information besides shows that currency extracurricular the deposit-taking fiscal institutions has accrued by 1.38% from N4.57 trillion successful April 2025 to N4.63 trillion successful May 2025.

The currency extracurricular the banks present accounts for 92.4% of the full currency successful circulation, up from 91.3% successful April 2025.

Compared to May 2024, erstwhile Currency successful Circulation was N3.97 trillion, and currency extracurricular the slope was N3.71 trillion, some parameters person grown by 26.2% and 24.8% respectively.

When did the Cash successful circulation commencement increasing?

According to This Day news, the latest summation is lone a continuation of the upward inclination observed since June 2024.

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

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

Cash extracurricular the banks besides grew from N3.67 trillion successful July 2024 to N3.87 trillion successful August, N4.02 trillion successful September, and N4.29 trillion successful October 2024.

By November 2024, it peaked astatine N4.65 trillion extracurricular the banking system. Note that determination was currency scarcity erstwhile large banks acceptable withdrawal limits for customers.

Nigeria’s system stabilizes arsenic currency successful circulation declines

By January 2025, the economy appeared to person stabilized, with ostentation declining and the results disposable successful the CBN data.

Cash extracurricular the banking strategy has present reached 92.4%. Photo credit: Contributor
Source: Getty Images

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

The latest summation successful currency successful circulation mightiness mean that the money supply is gradually outpacing economical activities.

Naira successful Circulation Reduces arsenic CBN Stabilises FX Market

In related news, the full worth of naira successful circulation fell from N5.04 trillion successful February 2025 to N5 trillion arsenic of March 2025.

This was a effect of CBN controlling the quantity of wealth successful circulation arsenic 1 mode to support economical stableness and trim inflationary pressures.

Legit.ng reported that the peculiar involution reserves remained dependable astatine N284.36 cardinal for the archetypal 3 months of 2025.

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Source: Legit.ng