The Central Bank of Nigeria (CBN) has authorised the production of 5,706.8 million pieces of banknotes for the 2025 financial year, a 20.5 percent increase from the 4,737.5 million pieces approved in 2024. The approval, detailed in the CBN's 2025 annual report and statement of accounts, underscores the apex bank's response to what it describes as stronger economic activity and elevated demand for physical cash.
Nigeria's currency in circulation reached N5.73 trillion in 2025, compared with N5.44 trillion in the previous year. This represents a year-on-year growth of approximately 5.4 percent and marks a sustained upward trajectory from N3.33 trillion recorded in 2021. The CBN linked the rise to increased economic transactions and a greater need for cash across the country.
How the Printing Allocation Was Divided
Of the total approved banknotes, the Nigerian Security Printing and Minting (NSPM) Plc received an allocation of 2.0 billion pieces, representing 35 percent of the whole currency indent. The remaining 65 percent was assigned to foreign high-security printing firms, according to the CBN report.
However, NSPM did not fulfil its mandate within the year. By December 31, 2025, the local printer had delivered 1.24 billion pieces, equivalent to 62 percent of its share, with a face value of N368.83 billion. The outstanding balance of 760.76 million pieces remained undelivered at the year-end, leaving a notable gap in local production capacity.
Foreign printers, by contrast, completed delivery of 2.21 billion pieces, covering the N1,000, N500, and N200 denominations. A separate batch of 1.5 billion pieces awarded to foreign printers in November 2025 was still being processed at the close of the year, indicating ongoing supply chain activity extending into 2026.
Currency in Circulation Trends
The CBN's historical data also reveals a broader pattern in Nigeria's cash economy. Currency in circulation stood at N3.33 trillion in 2021, dipped slightly to N3.01 trillion in 2022, and then climbed to N3.65 trillion in 2023. Over the last two years, the figure has risen sharply, reaching N5.44 trillion in 2024 and N5.73 trillion in 2025.
This consistent growth in cash circulation comes despite the central bank's ongoing push for digital payment adoption, as many Nigerians continue to rely on physical notes for day-to-day transactions, especially in rural and underserved areas.
Cost of the Currency Indent Falls Sharply
Interestingly, while the volume of banknotes approved for printing increased, the total value of the currency indent declined considerably. The approved production value dropped to N370 billion in 2025 from N410 billion in 2024. That is a steep reduction from N1.02 trillion recorded in 2023, N1.26 trillion in 2022, and N1.10 trillion in 2021.
The divergence between higher volume and lower value indicates a strategic shift towards printing lower-denomination notes in larger quantities, rather than focusing on high-value notes that dominated previous indents. This approach aims to address the scarcity of smaller denominations while managing production costs.
Why Low-Denomination Notes Remain Scarce
The scarcity of N100 and N200 notes has been a persistent issue. CBN Governor Olayemi Cardoso attributed this to more Nigerians switching to digital payments and the declining everyday usefulness of low-value currency. He also cited inflation as a contributing factor, noting that the purchasing power of smaller notes has been eroded, making them less practical for transactions.
The issuance of 5.71 billion banknotes in 2025 and the mixed performance of NSPM highlight the complexities of Nigeria's cash management. While the central bank is expanding the cash supply to meet demand, the local printer's shortfall and the shift in note composition could have implications for cash availability in the early months of 2026. The CBN's data suggests a transition toward a more digital-oriented financial system, even as cash remains a critical part of the economy.
