Data from the Central Bank of Nigeria (CBN) shows that the currency in circulation (CIC) reached a year high of N2.5 trillion in May 2023, up by 7.4% from N2.3 trillion in January 2023.
The CIC comprises the currency outside the banking system and the vault cash of banks.
According to the data, currency in circulation rose from N2.3 trillion to N2.5 trillion, the highest recorded in 2023, and since the Supreme Court reversed a CBN policy on new naira notes.
Meanwhile, currency outside banks also rose to N2.1 trillion in May from N2 trillion at the end of April 2023.
The spate of rise in currency in circulation suggests the country is gradually going back to trends recorded in 2022 when the currency in circulation grew month and month, climaxing to about N3.3 trillion in May 2022.
Between February when the currency in circulation was around N982 billion and May this year, it has risen by 50%, the fastest we have seen in recent years.