Nigeria’s Currency in Circulation Rises to N5.73 Trillion, CBN Annual Report Shows
Currency in circulation in Nigeria climbed to N5.73 trillion in 2025, up from N5.44 trillion the previous year, according to data drawn from the Central Bank of Nigeria’s 2025 Annual Report, as reported by AllAfrica.
The apex bank printed 3.43 billion units of naira notes during the period to meet what the report described as growing cash demand across the economy. The increase of roughly N290 billion year-on-year represents one of the more significant expansions of physical currency in circulation in recent years and comes against a backdrop of high inflation and continued pressure on the naira’s exchange value.
A predominantly cash-driven economy
Nigeria remains a largely cash-driven economy despite repeated policy efforts to encourage electronic payments and reduce the cost of printing, distributing, and managing physical currency. The Central Bank of Nigeria, headquartered in Abuja, has long argued that currency-in-circulation figures reflect the depth of economic activity and the preferences of households and small businesses, many of which operate outside the formal banking system.
Currency redesign and reform
The latest figures follow several years of turbulence in Nigeria’s currency policy, including the controversial 2023 naira redesign that temporarily constricted cash supply and triggered widespread queues at banks and automated teller machines. Since then, the central bank has continued to refine policies aimed at balancing the availability of physical cash with broader efforts to deepen digital payments and stabilise the naira.
The annual report’s disclosure of new note production comes at a time when Nigerian authorities are grappling with elevated inflation, which has eroded purchasing power and increased the volume of cash transactions needed for everyday commerce. Analysts have repeatedly noted that in periods of high inflation, demand for physical banknotes typically rises as households seek to complete transactions quickly before prices climb further.
Operational and monetary implications
Currency printing also carries implications for production costs, security logistics, and the lifespan of banknotes, all of which factor into the central bank’s operational planning. Nigeria’s naira denominations range from smaller notes used for daily purchases to higher-value bills introduced in past reforms, each requiring regular replenishment as notes wear out or are withdrawn from circulation.
While the Central Bank has not publicly linked the latest printing figures to any single factor, the data point is likely to draw attention from economists monitoring the size of base money in the system. As AllAfrica reported, the figures are drawn directly from the CBN’s published annual report, providing a rare official window into currency production volumes that the bank does not routinely disclose in granular detail during the year.
Sources
This report was written from coverage published by the following news organisations. Follow the links for the original reporting.
