The total amount of naira in circulation declined to N5 trillion in March 2025, continuing a downward trend from N5.04 trillion in February and N5.24 trillion in January, according to the latest money and credit statistics released by the Central Bank of Nigeria (CBN).
This consistent decline reflects the apex bank’s ongoing strategy to reduce inflationary pressures and enhance economic stability through tighter control of money supply.
The naira in circulation refers to the total physical currency available in the economy, encompassing funds used for everyday transactions, investments, and savings. A reduction in this figure typically signals a move toward monetary tightening, especially in times of high inflation.
In contrast to the decline in circulating currency, bank reserves have shown a steady increase. Reserves rose to N28.52 billion in March from N27.57 billion in February and N27.43 billion in January. This uptick highlights the CBN’s commitment to maintaining liquidity and ensuring financial security within the banking sector.
Meanwhile, special intervention reserves remained unchanged at N284.36 million across the first quarter of 2025.
For context, in March 2024, naira in circulation was significantly lower at N3.87 trillion, having steadily increased from N3.65 trillion in January and N3.69 trillion in February of the same year. This comparison underscores the impact of recent monetary policy shifts over the past year.
Additionally, Nigeria’s money supply recorded its first monthly decline in 2025, dropping by 0.56% from N110.94 trillion in January to N110.32 trillion in February. This move is aligned with the CBN’s broader liquidity management measures, which also included foreign exchange adjustments and policy tightening.
