Currency in Circulation Hits New High at N5.24 Trillion, Cash Outside Banks Now 90 Per Cent
- Data from the Central Bank of Nigeria (CBN) has shown an increase in currency in circulation and cash outside banks
- The CBN data reveals that currency in circulation hit a new high of N5,24 trillion in January while cash outside banks stood at N4.74 trillion
- The development comes amid an increase in ATM withdrawal charges by CBN, which experts say could spike cash outside the banking system
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) data has revealed that the total currency in circulation (CinC) hit a record high of N5.24 trillion in January 2025, representing a 43.5% increase from N3.65 trillion in January 2024.
A breakdown of the CBN data shows that a large portion of the N5.24 trillion, N4.74 trillion, or 90.4% was outside the banking industry, showing a continued dependence on cash transactions.
Source: Getty Images
Currency in circulation jumps in January 2025
Relative to 2024, currency outside banks increased 44.5% from N3.28 trillion in January last year to N4.74 trillion in January 2025.
The apex bank’s data shows a steady increase in currency in circulation and cash outside banks in the past year.
At the start of 2024, currency in circulation stood at N3.65 trillion, with N3.28 trillion, representing 89.9% outside the banking system.
Currency in circulation: 2024 monthly breakdown
According to reports, by February, currency in circulation rose to N3.69 trillion, with N3.41 trillion outside the banking system.
March witnessed an increase, with N3.87 trillion in circulation and N3.63 trillion outside the banks.
In April 2024, there was a slight drop in cash outside banks, with N3.61 trillion, representing 92% of the N3.92 trillion currency in circulation.
The trend changed in May when currency in circulation spiked to N3.97 trillion, with N3.71 trillion held outside the banking system.
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The spike continued in June, hitting N4.05 trillion, at 93.5% of the cash outside the banks.
In July, there was a reprieve as currency outside banks declined to N3.67 trillion, while total currency in circulation remained at N4.05 trillion.
The move did not last as August saw another spike in currency in circulation, rising to N4.14 trillion and N3.87 trillion outside banks.
September saw the same trend as currency in circulation hit N4.31 trillion, while N4.02 trillion cash remained outside banks.
There was a rise in currency in circulation in October at N4.55 trillion, with N4.29 trillion outside the banks.
In November, currency in the system hit record N4.88 trillion, with N4.65 held outside banks.
The figure marked the highest in cash outside the banks in 2024.
Currency in circulation: CBN increases ATM withdrawal limits
CBN skipped the December figure before releasing the January report, which stands at N5.24 trillion in currency in circulation and N4.74 trillion outside the banking system.
The apex bank paused interest rate adjustment for January following the rebasing of Nigeria’s inflation figures to 24.75%.
Experts have said that the latest increase in ATM withdrawal limit to N20,000 per transaction by CBN could fuel a further spike in currency in currency in circulation and cash outside banks.
They say the new policy could increase inflation as plenty of cash becomes available in the system.
Ways to avoid the new N100 ATM withdrawal charges
Legit.ng earlier reported that CBN increased the withdrawal charge on off-site ATMs to N100.
The new policy would become effective on March 1, 2025.
According to the CBN, any withdrawals done in ATMs other than the holder’s ATM would attract a charge of N100 per N20,000 transactions.
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Source: Legit.ng
