This upward trend in CoB has been ongoing since March and can be attributed to the Supreme Court order that allows old N200, N500, and N1,000 notes to remain in circulation until December 31, 2023.
CBN’s August money and credit data
The Central Bank of Nigeria’s (CBN) Money and Credit data for August reported that Currency-In-Circulation (CIC) stood at N2.66 trillion, marking a 2.7 percent increase from the N2.59 trillion recorded in July 2023.
It is worth noting that the CBN’s implementation of the Naira redesign and withdrawal of old banknotes led to the absorption of approximately N1.81 trillion from CoB, resulting in a significant decrease in Currency-in-Circulation to N1.4 trillion in January 2023.
Additionally, data from the CBN Money and Credit Statistics revealed a 0.62 percent month-on-month increase in Banks’ credit to the Government, rising from N32.5 trillion in August to N32.3 trillion in July.
Credit extended to the private sector also saw growth, increasing by 1.1 percent to N54.7 trillion from N54.1 trillion.
These developments contributed to a 0.92 percent rise in Net domestic credit, which reached N87.3 trillion in August, up from N86.5 trillion in July.