Nigeria’s currency in circulation exceeds N4 trn in June 2024, first time in history

The latest data from the Central Bank of Nigeria (CBN) shows that the currency in circulation (CIC) reached a year-high of N4.05 trillion in June 2024, up by 56% from N2.6 trillion in the same month of the previous year. The CIC comprises the currency outside the banking system and the vault cash of banks. […]

The latest data from the Central Bank of Nigeria (CBN) shows that the currency in circulation (CIC) reached a year-high of N4.05 trillion in June 2024, up by 56% from N2.6 trillion in the same month of the previous year.

The CIC comprises the currency outside the banking system and the vault cash of banks.

This increase in currency circulation could have both positive and negative impacts on the economy. On the positive side, higher cash circulation might indicate increased economic activities and consumer spending. However, it also raises concerns about inflationary pressures, as more cash in the economy can lead to higher prices for goods and services.

For the first time in Nigeria’s history, the currency in circulation has surpassed N4 trillion, according to data from the CBN.

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The month-on-month (MoM) growth rate was 2%, from N3.65 trillion recorded in May 2024.

The data  further indicated that  94% of currency in circulation is outside the banking system, as cash outside banks hit a new high of N3.79 trillion. The currency outside banks has more than quadrupled over the past year.