As of November 2024, Nigeria has seen its currency in circulation hit a record high of N4.8 trillion, marking a seven per cent increase from the previous month. This surge comes at a time when Nigerians are facing cash shortages, with banks limiting daily withdrawals from ATMs to N20,000 per account holder.
Additionally, currency outside of banks reached an all-time high of N4.6 trillion in November, up from N4.2 trillion in October, according to data from the Central Bank of Nigeria (CBN).
Economist Dr. Paul Alaje explained that the increased money supply is likely contributing to inflation. He highlighted the impact of rising prices on everyday goods and how it can lead to inflation. Dr. Alaje also criticized the CBN’s efforts to control money supply through interest rates, stating that it may not be an effective solution. 
With the ongoing challenges facing Nigerians in accessing cash, coupled with the rise in currency circulation and inflation, it remains to be seen how the government and central bank will address these concerns in the future.
