Nigeria’s currency in circulation, representing the total amount of cash in paper notes or coins issued by the Central Bank of Nigeria (CBN) for transactions, has reached its highest level in the year at N2.60 trillion in June 2023.
According to the latest data released by the CBN, the currency in circulation experienced an 88 percent increase, rising from N1.39 trillion in January to N2.60 trillion in June 2023.
The fluctuation in currency circulation during the first half of 2023 saw it standing at N1.39 trillion in January, dropping to N982.097 billion in February. However, it rose to N1.68 trillion in March, further increasing to N2.48 trillion in April, N2.53 trillion in May, and finally reaching N2.60 trillion in June.
In October 2022, the CBN announced plans to redesign three existing banknotes: the N200, N500, and N1000 notes, aiming to address concerns about the management of currency circulation, particularly outside the banking system. The new notes were scheduled to be in circulation from December 15, 2022, while the old notes would remain legal tender until January 31, 2023.
The decision to redesign the banknotes was driven by various challenges in currency management, such as counterfeiting, the use of cash for illegal activities, and the hoarding of banknotes by the public.
However, the policy faced widespread disapproval from Nigerians, leading the present government to reverse the course five months later. The use of both the old and new notes was permitted until the end of 2023.
