Currency-in-circulation (CIC) in Nigeria has jumped to N2.99 trillion in October, the highest since the beginning of the year, according to data from the Central Bank of Nigeria (CBN).
This represents 115.10 percent compared to the level of N1.39 trillion in January this year and 8.33 percent higher than N2.76 trillion in the preceding month (September 2023).
In October 2022, the Central Bank of Nigeria (CBN) withdrew the old N200, N500, and N1000 notes from circulation and introduced new designs. This resulted in a temporary decrease in the CIC as people exchanged their old notes for new ones. However, once the exchange period ended, the CIC began to rise again as people withdrew more cash.
The Nigerian economy has been growing in recent years, and this has led to an increase in demand for cash. As people earn more money, they are more likely to use cash to make transactions.
Read also: Ways and means, CBN and the Nigerian economy
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