The total currency in circulation (CIC) in Nigeria rose to N5.015 trillion in May 2025, according to the latest data released by the Central Bank of Nigeria (CBN). This represents a slight uptick of 0.24% from N5.003 trillion in April, indicating continued liquidity build-up in the economy despite ongoing monetary tightening by the apex bank.
Of particular concern is the rise in currency outside the formal banking system. The amount of cash held by the public—outside deposit-taking institutions—increased from N4.57 trillion in April to N4.63 trillion in May, a 1.38% rise. Consequently, cash outside banks accounted for 92.4% of total CIC in May, up from 91.3% in April.
This trend highlights the persistent preference for physical cash over digital or formal banking channels, which complicates the Central Bank’s monetary policy transmission and inflation control strategies.
A year-on-year comparison shows a 26.2% increase in total CIC from N3.97 trillion in May 2024, while the amount of cash held outside banks grew by 24.8% from N3.71 trillion during the same period.
These figures suggest a steady rise in cash-based transactions and financial disintermediation, posing challenges to financial inclusion, inflation targeting, and cashless policy initiatives.
