Currency Outside Banks Now 92% of CIC, Up 73.4% YoY

Nume Ekeghe

Currency in circulation has improved from 94 per cent recorded in March 2024 by 2 per cent compared with the latest figures of April revealing that the amount of currency held outside banks improved to N3.6 trillion in April 2024, representing a significant portion of the total currency in circulation (CIC), which stood at N3.92 trillion.

This also reflects a notable 73.46 per cent increase year-on-year (YoY) compared to the N2.08 trillion recorded in April 2023.

However, this trend indicates the first time since the reversal of the currency redesign where there was an improvement of currency outside banks compared to total currency in circulation.

A breakdown of the money and credit statistics data released by the Central Bank of Nigeria (CBN) revealed that the amount of currency held outside banks surged to N3.63 trillion in March 2023, representing a significant portion of the total currency in circulation (CIC), which stood at N3.87 trillion.

In February 2024, currency outside banks reached N3.41 trillion, comprising 92 per cent of the total CIC, which amounted to N3.69 trillion. This is an increase from January 2024 when currency outside banks represented 89 per cent of the CIC, totalling N3.28 trillion from a total CIC of N3.65 trillion.

Comparing year-on-year figures between February 2023 and February 2024 reveals a remarkable 304 per cent surge in currency outside banks, leaping from N843 billion in 2023 to N3.41 trillion in 2024.

Similarly, the CIC showed a significant 276 per cent increase over the same period, climbing from N982 billion in February 2023 to N3.69 trillion in January 2024.

A comprehensive analysis of the trends in 2023 revealed fluctuations in both Currency in Circulation and currency held outside banks. In January 2023, CIC was reported at N1.32 trillion, decreasing to N982 billion in February.