The total amount of naira in circulation fell to N5 trillion in March 2025, marking a steady decline from N5.04 trillion in February and N5.24 trillion in January, according to the latest money and credit statistics published by the Central Bank of Nigeria (CBN).
This continued drop in physical currency reflects the apex bank’s ongoing monetary tightening efforts aimed at controlling inflation and stabilising the economy. Currency in circulation refers to the total amount of physical cash available for transactions, savings, and investment activities across the country.
In contrast, the CBN’s bank reserves recorded a notable increase, rising to N28.52 billion in March from N27.57 billion in February, and N27.43 billion in January. Bank reserves, held by the CBN and commercial banks, are critical for ensuring liquidity and maintaining confidence in the financial system.
Meanwhile, the special intervention reserves remained unchanged at N284.36 million throughout the first quarter of 2025.
For context, as of March 2024, naira in circulation stood at N3.87 trillion, a steady increase from N3.69 trillion in February and N3.65 trillion in January. Currency outside banks also showed consistent growth during the same period last year, moving from N3.28 trillion in January to N3.63 trillion by March.
In a related development, Nigeria’s money supply recorded its first dip in 2025, falling by 0.56% from N110.94 trillion in January to N110.32 trillion in February. Analysts attribute the decline to the CBN’s deliberate moves to manage system-wide liquidity, monetary tightening, and foreign exchange adjustments.
The data points to a deliberate recalibration of Nigeria’s financial environment as the CBN continues to pursue macroeconomic stability through reduced liquidity and enhanced reserve buffers.
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