The Central Bank of Nigeria (CBN) has said that Nigeria’s currency in circulation jumped to N5.7 trillion as of December 2025, making it an all-time high when compared to N5.44 trillion it closed December 2024.
Currency in circulation refers to the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses.
The N5.7 trillion came at a time the CBN tightened its monetary policy and inflation rate to 15.15 per cent in December 2025 from 17.33 per cent in November 2025.
Data from the CBN showed that currency in circulation throughout 2025 maintained an average N5.1trillion amid increasing electronic transfer by bank customers.
Currency in circulation amid December spending continued to witness a massive increase as Nigerians flooded the banking hall to celebrate Christmas and New Year.
Specifically, currency in circulation crossed the N5trillion mark to hit a record of N5.44 trillion December 2024 as against N3.65trillon in 2023.
In January 2024, at the height of the currency redesign policy of CBN, currency in circulation stood at N3.65 trillion and by February 2024, it increased to N3.69 trillion.
The CBN had revealed that that currency in circulation closed December 2023 at N3.65 trillion from N1.39 trillion reported in January 2023.
The CBN had announced the designing of the naira for N200, N500, and N1000 denominations, which began circulation on December 2022 and is expected to be in use simultaneously as the old note till January 2023.
The apex bank said that the decision was made in light of growing cases of naira counterfeiting and currency hoarding.
“In recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes. Although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years,” the CBN said.
Some experts had expressed concern that the current pattern in currency in circulation is a reflection of growing lack of confidence in the banking system, stressing that an increased preference for cash transactions, possibly driven by socio-economic factors that include bad telecommunication services.
This alarming trend signals a high liquidity in the financial sector, posing significant risks to the nation’s inflation rate, among others.
When CBN governor. Mr. Olayemi Cardoso resumed office September 2023, currency in circulation was at N2.76 trillion but close last year at N5.7 trillion.
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