Naira in Circulation Drops to N5tn as of March 2025 Amid Tightened Monetary Policy

As of March 2025, Nigeria’s currency in circulation dropped to N5 trillion, reflecting a decrease from N5.04 trillion in February 2025. This marks a further reduction from the N5.24 trillion reported in January 2025, according to the latest data from the Central Bank of Nigeria (CBN). The decline in the naira in circulation is part of broader efforts to stabilize the economy and curb inflationary pressures by managing the money supply.

The reduction in currency circulation indicates a targeted strategy to reduce inflation, providing more control over the national economy. Physical currency in circulation represents money used for daily transactions, savings, and investments. Thus, controlling this aspect of the money supply plays a role in controlling inflation and ensuring economic stability.

Alongside this decrease, the CBN’s bank reserves saw a rise to N28.52 billion in March 2025, up from N27.57 billion in February. This is a sign of the bank’s ongoing efforts to maintain liquidity and financial stability in the banking sector. The special intervention reserves remained unchanged at N284.36 million during the period.

Looking back at March 2024, the value of currency in circulation was significantly lower, standing at N3.87 trillion, which had increased from N3.69 trillion in February and N3.65 trillion in January. This shows a marked shift in monetary trends, with the CBN’s efforts to manage liquidity continuing through 2025. The reduction in money supply by the CBN reflects its ongoing monetary tightening measures to control inflation and manage the country’s economic challenges.

Source: Punch