Currency in Circulation Rises to Record N5.73tn in 2025 Despite Slower Inflation

Currency in circulation (CIC) in Nigeria rose to a record N5.73 trillion at the end of 2025, reflecting stronger economic activity and sustained demand for cash, even as inflationary pressures moderated in the first half of 2026, according to the Central Bank of Nigeria (CBN) Annual Report and statement of accounts 2025.

The report showed that currency in circulation increased by N292 billion, or 5.4 per cent, from N5.44 trillion in 2024 to N5.73 trillion in 2025, the highest level recorded over the past five years. The CBN attributed the increase to the growing pace of economic activities across the country and a corresponding rise in cash demand.

What currency in circulation means

Currency in circulation refers to the total value of physical naira notes and coins held by the public and outside the vaults of the CBN. It is an important monetary indicator because it reflects the amount of cash available for transactions in the economy.

Data contained in the report showed that currency in circulation stood at N3.33 trillion in 2021, declined to N3.01 trillion in 2022 following the naira redesign and cash withdrawal policy, before rising to N3.65 trillion in 2023, N5.44 trillion in 2024, and N5.73 trillion in 2025.

To support cash demand, the apex bank approved the production of 5.71 billion pieces of legal tender for 2025, representing a 20.5 per cent increase from the 4.74 billion pieces approved in 2024.

Of the approved volume, the Nigerian Security Printing and Minting (NSPM) Plc received an allocation of 2.0 billion pieces (35 per cent), while foreign High Security Printers were allocated the remaining 65 per cent.

The report stated that as of December 31, 2025, the NSPM had delivered 1.24 billion pieces, representing 62 per cent of its allocation, with a face value of N368.83 billion. Foreign printers completed the delivery of 2.21 billion pieces across the N1,000, N500 and N200 denominations, while production of an additional 1.5 billion pieces awarded in November 2025 was still ongoing at year-end.

Beyond printing new notes, the CBN said it intensified measures to improve the efficiency and integrity of Nigeria’s currency management system.

The Bank disclosed that its forensic currency laboratory continued investigating suspected counterfeit banknotes and examining mutilated notes. It also maintained environmentally sustainable disposal of unfit banknotes through recycling initiatives.

To strengthen confidence in the naira, the CBN carried out nationwide public sensitisation campaigns on proper handling and preservation of banknotes through roadshows and market outreach programmes. It also conducted a nationwide evaluation of lower denomination polymer notes to assess their durability, security features and overall fitness for circulation.

The apex bank further revealed that it sanctioned deposit money banks found violating currency management guidelines after conducting periodic mystery shopping exercises.

In addition, the CBN said it inaugurated a technical committee comprising officials of the Bank, the Association of Licensed Cash Managers of Nigeria (ALCMAN), the Committee of Heads of Bank Operations (CHBO) and the Office of the National Security Adviser (ONSA) to improve the efficiency of cash processing and cash-in-transit operations nationwide.

On currency processing, the report noted that the Bank operated 22 Banknote Processing System (BPS) 1000 machines across 11 branches by the end of 2025 and installed 24 new BPS M7 machines in 12 processing branches. It also commenced pilot implementation of an online reporting system for real-time monitoring of currency processing operations and approved the disposal of demonetised coins to decongest its vaults.

The increase in cash circulating in the economy comes as inflation has continued to ease. According to the latest National Bureau of Statistics (NBS) Consumer Price Index report, headline inflation slowed marginally to 15.91 per cent in June 2026 from 15.93 per cent in May, although food inflation remained elevated at 17.52 per cent, indicating that price pressures persist in essential consumer goods despite broader macroeconomic stability.

The moderation in inflation, alongside the continued expansion in currency circulation, suggests that while demand for cash remains strong as economic activities recover, price growth has become more contained than in previous years. Exchange rates and cash management will remain crucial to preserving confidence in the naira and supporting economic growth.