Nume Ekeghe

Currency in circulation (CIC) in Nigeria fell below the N5 trillion mark for two consecutive months of August and September 2025, marking the first time this year that the figure has remained under the threshold, the ‘Money and Credit statistics’ data from the Central Bank of Nigeria (CBN) has revealed.

The CBN’s money supply data showed that total CIC stood at N4.95 trillion in September, slightly higher than N4.92 trillion in August, but still below the N5 trillion mark sustained between February and July.

This, analysts posits represents a continued moderation in cash supply, reflecting a more cautious liquidity environment and improved cash management within the banking system.

Prior to August, Nigeria’s CIC had hovered above N5 trillion for seven consecutive months. The central bank reported N5.04 trillion in February, N5.00 trillion in March, and N5.01 trillion between April and May, before a gradual easing began in midyear. June recorded N5.01 trillion, while July marked the start of the sub-N5 trillion trajectory that continued through the third quarter.

The pullback in currency supply coincides with ongoing monetary tightening, increased adoption of digital payment channels, and the CBN’s effort to mop up excess liquidity from the economy in response to inflationary pressures.

However, the report shows that currency outside banks accounting for over 90 per cent of total circulation, estimated at N4.47 trillion in September which also indicates an improved figure. 

Market watchers said the recent trend, if sustained, could signal a gradual rebalancing in the CBN’s liquidity management efforts, even as the apex bank seeks to deepen financial inclusion, promote digital payment adoption, and strengthen confidence in the formal financial system.