The currency in circulation in Nigeria fell by N37.94 billion in February to N3.25 trillion compared to N3.29 trillion recorded as of January 2022.
According to a data from the money and credit report of the Central Bank of Nigeria (CBN), the drop represents a 1.2% decline on a month-on-month basis, when compared to the corresponding period of 2021, it increased by 16.95% compared to N2.78 trillion as of February 2021.
Several intervention policies by the CBN had pushed currency in circulation to its highest level in history in December 2021, however, it has recorded a decline in two consecutive months, dropping by N37.13 billion in January and N37.84 billion in February 2022.
Meanwhile, credit by banks to the private sector increased by N1.46 trillion in February to N36.91 trillion from N35.45 trillion recorded as of the previous month.
Similarly, banks’ credit to government also increased by 4.5% in February 2022, improving from N14.28 trillion recorded as of January 2022 to N14.92 trillion.
This represents an increase 4.1% month-on-month and it is significantly higher than the additional gain of N257.45 billion recorded in the previous month, largely due to the borrowing policy to stimulate economic growth by the CBN.
Currency outside the banks as of February 2022 was N2.73 trillion, which is 1.7% lower than the N2.78 trillion as of the previous month, representing a decline of N47.53 billion.