Data from the Central Bank of Nigeria (CBN) has shown that more than 93 per cent of currency in circulation is outside the banking industry having surged to an unprecedented N4.04 trillion in June 2024.
This marks a significant increase in the amount of money in the economy.
The CBN’s Money and Credit Data also highlighted that currency held outside banks reached a historic high of N3.79 trillion, accounting for 93.6 per cent of the total currency in circulation.
A breakdown of the first six months of the year shows that 2024 began with N3.65 trillion in circulation, reflecting a stable start aligned with typical post-holiday economic activities. By the end of February, this figure had modestly increased to N3.69 trillion, a growth of N43 billion or 1.18 per cent from January.
March recorded a more substantial rise, with the currency in circulation climbing to N3.87 trillion, marking a month-on-month increase of N175 billion or 4.76 per cent. The trend continued in April, with the figure reaching N3.92 trillion, an increase of N53 billion or 1.39 per cent from March, likely spurred by heightened economic activity during the Easter period.
In May, circulation further increased to N3.97 trillion, a rise of N42 billion or 1.07 per cent from April. The most significant jump occurred in June, when currency in circulation peaked at N4.04 trillion, an increase of N84 billion or 2.11 per cent from May.
Looking specifically at currency outside banks, the year started with N3.28 trillion. By the end of February, this figure had risen to N3.41 trillion, an increase of N130 billion or 3.98 per cent from January.
March saw a notable rise in currency outside banks, reaching N3.63 trillion, a month-on-month increase of N217 billion or 6.34 per cent. However, in April, there was a slight decrease to N3.61 trillion, a drop of N22 billion or 0.62 per cent from March.
The upward trend resumed in May, with currency outside banks increasing to N3.71 trillion, up by N105 billion or 2.93 per cent from April. The most significant rise was in June, with currency outside banks reaching N3.79 trillion, an increase of N80 billion or 2.16 per cent from May.
