Recent data published by the Central Bank of Nigeria (CBN) reveals that the amount of currency in circulation has reached N2.76 trillion as of September 2023. This figure indicates a year-on-year (YoY) decline of 14.5% from the N3.23 trillion reported in September 2022.
Currency in circulation encompasses physical cash, which includes paper notes and coins utilized for transactions among consumers and businesses within a country.
According to the CBN, the N2.76 trillion in circulation is the highest figure recorded in 2023. In August, the reported currency in circulation stood at N2.66 trillion, representing a 3.80% increase from September 2023. It is noteworthy that the currency in circulation had experienced a significant drop to N982.1 billion by the end of February 2023 due to the CBN’s naira redesign policy.
The redesign initiative was launched by the CBN to address challenges in currency management, including counterfeiting, illicit activities involving cash, and the public hoarding of banknotes.
At the start of the policy, over 80% of the currency in circulation was held outside the banking system. However, following the completion of the policy in March 2023, the circulation of cash
