CBN Fails To Curb N80bn Rise In Currency In Circulation

The Central Bank of Nigeria, CBN effort to ensure that more cash is kept out of circulation as much as possible has faced serious challenges with over N80 billion cash circulating in the economy in September alone.

The development comes despite the apex bank cashless policy, tighter withdrawal limits and efforts to promote electronic payments in the Nigerian economy.

According to the apex bank) September Monetary and Credit Statistics, currency in circulation increased from N5.44 trillion in August to N5.52 trillion in September.

Currency held outside banks also rose by N50 billion, from N4.87 trillion to N4.92 trillion during the same period.

The increase comes despite several CBN measures aimed at reducing Nigerians’ dependence on physical cash and encouraging electronic transactions.

These include weekly withdrawal limits of N500,000 for individuals and N5 million for corporate organisations under the revised framework effective January 2026.

To enforce this policy excess cash charges are applied to withdrawals above the prescribed weekly limits, while the CBN continues to promote bank transfers, debit cards, mobile banking and other electronic payment channels.

Also, the CBN has made regulation for the provision of infrastructure and initiatives supporting instant transfers, mobile money and agent banking which are designed to make electronic transactions more accessible.

Meanwhile, experts insist that the rising cash figures highlight the challenge facing the CBN in reducing dependence on physical currency, even as Nigeria’s money supply expands.

Broad money supply (M3) rose by 5.40 per cent to N146.60 trillion in September, from N139.09 trillion in August.

However, the increase in money supply, according to experts who spoke on the issue, does not necessarily translate into more funds available for productive lending, saying Private-sector credit actually declined by 0.64 per cent during the month to N83.93 trillion.

The figures underline the need to distinguish between growth in monetary aggregates and the availability of credit to businesses and households.