As of March 2025, Nigeria’s currency in circulation (CIC) declined to ₦5 trillion, marking the third consecutive monthly decrease, according to the Central Bank of Nigeria (CBN).
This represents a 0.79% drop from ₦5.04 trillion in February and a cumulative decline of ₦240 billion (4.58%) since January 2025.
The CIC encompasses all physical cash, both coins and banknotes, used by the public and businesses outside the banking system.
A reduction in this metric may indicate increased cash deposits into banks, a shift towards digital transactions, or broader macroeconomic tightening measures.
This trend follows a period of growth earlier in the year, where the CIC rose to ₦5.24 trillion in January 2025 from ₦4.88 trillion in November 2024.
Notably, about 90.4% of this cash was held outside the banking system, highlighting the prevalent reliance on cash transactions in the economy.
The sustained decline in currency circulation suggests a potential shift in monetary dynamics, possibly influenced by increased digital payment adoption and the CBN’s monetary policies.
