The amount of naira circulating in Nigeria’s economy dropped to ₦5tn in March 2025, reflecting a continued decline from ₦5.04tn in February and ₦5.24tn in January, according to the Central Bank of Nigeria’s latest money and credit statistics report.
Currency in circulation refers to physical cash used by the public for everyday transactions, savings, and investments.
A consistent drop, such as this, is often seen as part of broader efforts to ease inflation and stabilise the economy.
At the same time, the CBN’s bank reserves rose to ₦28.52bn in March, up from ₦27.57bn in February.
These reserves stood at ₦27.43bn in January, suggesting a steady rise. However, the central bank’s special intervention reserves remained unchanged at ₦284.36m during the three-month period.
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Bank reserves are essential for maintaining liquidity and confidence in the financial system. The upward trend suggests continued steps by the apex bank to safeguard monetary stability.
For context, data from March 2024 showed currency in circulation was ₦3.87tn—up from ₦3.69tn in February and ₦3.65tn in January of that year.
The amount of cash outside banks had also increased steadily in early 2024, from ₦3.28tn in January to ₦3.41tn in February and ₦3.63tn in March.
In a related development, Nigeria’s money supply saw its first dip of 2025 in February, falling to ₦110.32tn from ₦110.94tn in January.
This 0.56% month-on-month decrease aligns with the central bank’s recent steps toward monetary tightening and exchange rate management.