Currency in circulation (CIC) in Nigeria climbed to N5.015 trillion in April 2025, up marginally from N5.003 trillion in March, according to the latest data from the Central Bank of Nigeria (CBN). The 0.24 percent increase reflects a continued build-up of liquidity in the economy despite efforts by the apex bank to tighten monetary conditions.
However, in a notable shift, the amount of currency held outside the formal banking system declined for the first time in three months. It dropped to N4.57 trillion in April from N4.59 trillion in March, representing a 0.4 percent month-on-month decrease.
Despite the decline, a significant portion of currency, 91.2 per cent remains outside banks, slightly down from 91.4 percent in the previous month.
Currency in circulation has steadily increased over the past year. In April 2024, CIC was N3.92 trillion, with N3.61 trillion or about 92 per cent outside the banking system. By May 2024, total CIC rose to N3.97 trillion, with N3.71 trillion held outside banks. In June, CIC climbed to N4.05 trillion, with N3.79 trillion, representing 93.5 percent outside the banking system. July maintained a CIC of N4.05 trillion, while currency outside banks dipped slightly to N3.67 trillion, making up 90.6 percent of the total.
In August, CIC increased to N4.14 trillion, with N3.87 trillion outside banks. September continued the trend with N4.31 trillion in circulation and N4.02 trillion held outside banks. October saw CIC rise further to N4.55 trillion, of which N4.29 trillion 94.3 per cent, was outside the banking system. November recorded a new peak, with N4.88 trillion in circulation and N4.65 trillion outside banks, the highest share observed during the year. December figure was N5.44 trillion while January 2025 reached N5.235 trillion before CIC declined slightly to N5.037 trillion in February and N5.003 trillion in March.
April’s uptick in total CIC, despite the minor decline in currency outside banks, indicates that liquidity conditions remain elevated. Broader monetary aggregates continue to reflect this expansion. Money supply (M3) rose to N119.10 trillion in April, a 4.3 percent increase from N114.22 trillion in March and a 22.8 percent jump year-on-year from N96.97 trillion in April 2024.
Meanwhile, credit to the private sector grew to N77.90 trillion in April, up from N76.26 trillion in March. In contrast, credit to the government contracted by 8.9 percent month-on-month, declining to N23.55 trillion in April from N25.85 trillion in March, although it remained 17.9 percent higher than the N19.97 trillion recorded in April 2024.