• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Currencies

Does this data confirm CBN is to blame for increase in currency outside banks?

Analysts Nairametrics by Analysts Nairametrics
November 21, 2022
in Currencies, Markets, Spotlight
CBN Gov. Godwin Emefiele and President Buhari

CBN Gov. Godwin Emefiele and President Buhari

Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s currency outside banks is a record N2.8 trillion as of October 2022, data from the central bank of Nigeria reveals.

This is against the latest decision by the central bank to replace the N200, N500, and N1000 notes due to the rising spate of currency outside circulation.

However, data from the apex bank shows the rising trend started in 2015 and has doubled over the seven years of President Buhari’s administration.

RelatedStories

CBN, forex

BREAKING: Court upholds CBN-backed NIBSS Authority to manage BVN Database nationwide 

July 4, 2025

IMF commendation sparks strong gains for Naira across parallel, official markets 

July 3, 2025

Data don’t lie: According to the data, currency outside circulation was just about N1.1 trillion in June 2015, the first full month of the current president.

  • By the end of his first term on May 29th, 2019, currency in circulation rose to about N1.7 trillion as more Nigerians kept naira outside of banks.
  • But between then and October 31st, 2022, the total amount of currency outside of Nigerian banks rose by N1 trillion to a whopping N2.8 trillion.
  • A closer look at the chart below reveals the increase started during the Covid lockdown year of 2020 where about N470 billion was additional currency outside banks.
  • The figure was N440 billion in 2021 and has been flat this year taking the total to about N910 billion in two years.

CBN Confirmed this: The apex bank also confirmed this in its press briefing on October 17th where it announced the introduction of new naira notes.

  • “Significant hoarding of banknotes by members of the public, with statistics showing that over 85% of currency in circulation are outside the vaults of commercial banks. 
  • To be more specific, as of the end of September 2022, available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion currency in circulation, was outside the vaults of Commercial Banks across the country; and supposedly held by the public. 
  • Currency in circulation has more than doubled since 2015; rising from N1.46 trillion in December 2015 to N3.23 trillion in September 2022. This is a worrisome trend that cannot be allowed to continue.”

See chart;

Chart of currency in circulation but outside banks.
Source: Nairalytics/CBN

Thought bubble: The central bank has alluded to corruption as a major reason for the surge in currency outside circulation. However, they have not provided data to substantiate this claim.

  • But a closer look indicates that the major increase in currency outside circulation occurred between 2020 and 2021 coinciding with a period of massive central bank intervention funds which the IMF has advised the apex bank to end.
  • We opine this may have triggered the surge in currency outside circulation as over N920 billion out of the additional N1.65 trillion added to currency outside banks since June 2015 is from the years 2020 and 2021.
  • We also observe a surge in currency outside circulation in years of massive currency depreciation in the black market such as 2015, 2017, 2020, and 2021.

Did some of the intervention funds end up as cash in the hands of Nigerians who have no incentive to push this back to the banking sector?

 


Follow us for Breaking News and Market Intelligence.
Tags: CBNCurrency outside Nigerian banking sectorNaira
Analysts Nairametrics

Analysts Nairametrics

Related Posts

CBN, forex
Breaking News

BREAKING: Court upholds CBN-backed NIBSS Authority to manage BVN Database nationwide 

July 4, 2025
Currencies

IMF commendation sparks strong gains for Naira across parallel, official markets 

July 3, 2025
British pound, Naira
Currencies

Naira stuck at N2,200/£ as British pound faces correction  

July 3, 2025
CBN, forex
Financial Services

Credit to Private sector slips marginally to N77.83 trillion in May 2025 despite surging money supply 

July 3, 2025
Naira , dollar, exchange rate
Currencies

Naira gains big in official market as dollar sinks globally

July 2, 2025
Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu
Digital Media

Oil Down, Dollar Weak, Naira Up: Why Nigeria’s Markets Are Defying the Odds – Drinks & Mics Ft. Chika Mbonu

June 28, 2025
Next Post
Kristalina Georgieva, IMF boss hints at 'synchronized slowdown' in global growth , IMF: 40% of African countries can't pay back their debts , Nigeria worse off, posts grows lower than LIDC benchmark - IMF, Measures introduced by Nigeria to ensure transparent use of the $3.4b IMF loan

IMF revises Nigeria's 2022 growth projection downwards to 3%

Comments 1

  1. Sayap Global Enterprises says:
    November 21, 2022 at 10:38 am

    The intervention Funds ended up in the Hands of Buhari Cronies and APC member who hoarded it to escape being detected by the public.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • World Bank Appoints Mathew Verghis as Country Director for Nigeria 
  • 10 African Central Banks exploring digital currencies in 2025 
  • Polo Luxury strengthens global partnership at 2025 Novelty showcase 

Follow us on social media:

Recent News

World Bank Appoints Mathew Verghis as Country Director for Nigeria 

World Bank Appoints Mathew Verghis as Country Director for Nigeria 

July 4, 2025
10 African Central Banks exploring digital currencies in 2025 

10 African Central Banks exploring digital currencies in 2025 

July 4, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics