CBN's Currency in Circulation Drops Significantly, as Redesigned Naira Notes are Rolled Out — According to the CBN, it dropped from N3.16 trillion in November 2022 to N982.09 billion in February 2023

The Central Bank of Nigeria (CBN) has reported a significant drop in the currency in circulation, as the bank phases out old Naira notes and replaces them with redesigned ones. According to the CBN, the currency in circulation increased from N3.16 trillion in November 2022 to N3.29 trillion in December 2022. However, it dropped sharply to N1.38 trillion in January 2023 and further to N982.09 billion in February 2023.

Governor of the CBN, Mr. Godwin Emefiele, noted that over 80 percent of the currency-in-circulation was outside the vaults of commercial banks. He added that reducing the significant amount of cash outside the banking system is crucial to ensuring monetary policy effectiveness, curbing criminal activities, and promoting financial inclusion.

Despite heavy criticisms from various stakeholders, the CBN continued with the policy, citing the need to drive digital payment acceptance and reduce the amount of currency outside the banking system.