CBN Projects Increase in Currency Circulation Amid Economic Growth
The Central Bank of Nigeria (CBN) has stated that the currency in circulation (CIC) is expected to rise from N5.44 trillion in 2024 to N5.73 trillion in 2025. This growth is attributed to an uptick in economic activities and a heightened demand for cash among the populace.
Details from the CBN’s 2025 annual report and financial statements reveal that the bank has significantly increased the quantity of currency notes approved for printing in the upcoming year. The report indicates that the CBN has authorized 5.71 billion currency indentations across various denominations for 2025, marking a 20.5% increase from the 4.74 billion approved in 2024.
Of the approved printing quota, 35% has been allocated to the Nigerian Security Printing and Minting Plc (NSPM Plc), while the bulk, comprising 65%, will go to foreign high-security printing firms. This strategic allocation highlights the bank’s focus on balancing local capacity with international expertise.
Rising Foreign Exchange Inflows
The report also highlights a notable increase in total foreign exchange inflows into Nigeria, which reached $109.86 billion in 2025, up from $96.53 billion in the previous year. The CBN attributes this growth primarily to an increase in voluntary inflows rather than government-generated sources.
According to the bank, foreign currency inflows through independent channels rose by 25.12% to $70.54 billion, accounting for 64.21% of total inflows for the year. Key factors driving this increase include enhanced non-oil export revenues, greater over-the-counter purchases, and an uptick in capital imports.
On the flip side, total foreign exchange outflows amounted to $49.05 billion, marking a 27.83% increase from the $38.37 billion recorded the previous year. This rise was mainly driven by higher outflows via independent channels. The CBN reported that outflows through banks constituted 66.86% of total outflows, with autonomous channels making up the remainder.
Significant Foreign Exchange Utilization Growth
The data further indicates a substantial 59.36% increase in foreign exchange utilization, which surged to $42.83 billion from $26.88 billion in 2024. Of this total, $18.76 billion, or 43.80%, was allocated for visible imports, up from $15.62 billion in the previous year.
Notably, the industrial sector dominated foreign exchange consumption for visible imports, accounting for 42.11% of the total. This was followed by the oil sector at 25.91%, industrial products at 15.64%, food at 10.51%, with transportation, minerals, and agriculture comprising smaller shares of 3.78%, 1.04%, and 1.00%, respectively.
