Currency in circulation in Nigeria fell by 18.8 percent year-on-year to N4.92 trillion in August 2025 from N6.06 trillion recorded in 2024, according to the latest data from the Central Bank of Nigeria (CBN).
On a month-on-month basis, currency in circulation dropped by 1.6 percent from N5.00 trillion in June 2025. The data for July 2025 was not provided.
The decline reflects the effect of the CBN’s tight monetary policy stance, which has continued to moderate liquidity levels in line with efforts to stabilize the economy and contain inflationary pressures.
At the same time, Nigeria’s broad money supply (M3) reached a record N199.5 trillion in August 2025, showing an 11.5 percent year-on-year increase from N179.0 trillion in August 2024.
On a monthly basis, M3 grew by 1.7 percent from N117.49 trillion in June 2025.
The CBN has intensified its liquidity management measures, including aggressive use of OMO bills and adjustments in the Standing Deposit Facility (SDF), to ensure monetary stability.
These measures have helped reduce currency outside the banking system, while also supporting financial intermediation and price stability.
Analysts note that the contraction in currency in circulation is consistent with the regulator’s push to channel liquidity into the formal banking sector, strengthen monetary transmission, and curb inflationary risks.