The currency in circulation in Nigeria has reached an all-time high of N2.84 trillion as at September 2021.
The amount peaked because of Central Bank of Nigeria’s (CBN) intervention across various sectors of the nation’s economy.
Currency in circulation is physical cash outside the vaults of the CBN, i.e all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks (DMBs).
Analysts attributed increase in currency in circulation to inflation rate, stressing that the CBN intervention in various sectors also contributed to physical notes in the country.
The President, Bank Customers Association of Nigeria (BCAN), Dr Uju Ogubunka, attributed hike in currency in circulation to weak infrastructures, maintaining that most Nigerians in rural areas are yet to adopt cashless means of transactions.
“Most Nigerians are used to cash and it will take a while for full adoption of cashless Nigeria. Hopefully, in the next 10 years, we might start having full impact of the cashless policy of the CBN across the country. For now, many Nigerians still depend on the cash to transact businesses.”
He said further that the eNaira project of the CBN may have a positively impact on currency in circulation.
