CBN approves 5.71bn new banknotes for 2025, explains N100, N200 scarcity

The Central Bank of Nigeria approved 5.71 billion banknotes for 2025, a 20.5% jump from the 4.74 billion pieces approved in 2024. The figures, from the CBN's 2025 annual report, show rising cash demand across the economy.

Currency in circulation also climbed to N5.73 trillion in 2025, compared with N5.44 trillion in 2024. The CBN linked the increase to stronger economic activity and higher demand for physical cash.

NSPM falls short of production target

Of the total approved banknotes, the Nigerian Security Printing and Minting (NSPM) Plc received an allocation of 2.0 billion pieces, representing 35% of the total indent. Foreign high-security printers were assigned the remaining 65%.

But NSPM did not complete its portion within the year. By December 31, 2025, the local printer had delivered 1.24 billion pieces, equivalent to 62% of its share, with a face value of N368.83 billion. The remaining 760.76 million pieces were still outstanding at year-end.

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.

Currency in circulation trend

The CBN's historical data shows how cash demand has moved in recent years. Currency in circulation stood at N3.33 trillion in 2021 and dipped slightly to N3.01 trillion in 2022 before climbing to N3.65 trillion in 2023. The figure then rose sharply to N5.44 trillion in 2024 and N5.73 trillion in 2025.

Despite the larger volume of banknotes approved for printing, the value of the currency indent has fallen considerably. The approved production value dropped to N370 billion in 2025 from N410 billion in 2024. That is a steep decline from N1.02 trillion in 2023, N1.26 trillion in 2022, and N1.10 trillion in 2021, reflecting a shift towards printing lower-denomination notes at higher volumes.

Why N100 and N200 notes are scarce

CBN Governor Olayemi Cardoso has said the growing scarcity of N100 and N200 notes is the result of more Nigerians switching to digital payments and the declining everyday usefulness of low-value currency. He said the country's financial system is shifting away from cash, particularly small notes, as electronic transactions become more common in daily life. He also pointed to inflation as a contributing factor, noting that the purchasing power of smaller notes has fallen.

For Nigerian businesses and consumers, the trend points to a gradual move away from small cash denominations even as the CBN prints more banknotes overall. The rising value of currency in circulation suggests cash still matters, but the shift in production toward lower denominations and the push for digital payments may shape how everyday transactions are settled in the months ahead.