Currency in circulation dropped by N52.5bn from N2.35tn at the end of May to N2.29tn in June, the latest figures from the Central Bank of Nigeria showed on Wednesday.
Recent figures showed that there was a steady rise in cash in circulation during the lockdown introduced in some states to contain the COVID-19 pandemic in the country.
Statistics obtained from the CBN showed that currency in circulation, which stood at N2.29tn at the end of March, rose to N2.3tn in April.
The apex bank said, “Currency in circulation at end-November 2019 rose by 9.9 per cent to N2.2tn, in contrast to the decline of 0.4 per cent at the end of the third quarter of 2019.
“The development, relative to the level in the preceding quarter, reflected mainly the increase in its currency outside banks component and seasonal factors.
“Currency in circulation is defined as currency outside the vaults of the central bank; that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks.”
The CBN stated that it employed the “accounting/statistical/withdrawals and deposits approach” to compute the currency in circulation in Nigeria.
This approach involved tracking the movements in currency in circulation on a transaction by transaction basis.
It said for every withdrawal made by a DMB at one of CBN’s branches, an increase in the CIC was recorded, adding that for every deposit made by a DMB at one of CBN’s branches, a decrease in the CIC was recorded.
The transactions are all recorded in the CBN’s CIC account, and the balance on the account at any point in time represents the country’s currency in circulation.
According to the apex bank, analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system was held by the general public who hoard a lot of the new banknotes.
FIRS extends tax debt payment deadline
Reprieve has come for tax debtors as the Federal Inland Revenue Service (FIRS) has further extended the deadline on waiver of penalty and interest window on tax debts owed by individuals and businesses from June 30, 2020 to August 31, 2020.
Executive Chairman, FIRS, Mr. Muhammad Nami, disclosed the latest extension in a statement issued on Wednesday by the Director, Communications and Liaison Department at FIRS, Abdullahi Ismaila Ahmad.
Nami stated the extension was a follow -up to a number of palliatives devised by the Service to cushion the effects of the COVID-19 pandemic on the Nigerian economy in order to support tax-paying individuals and business entities in the country.
According to Nami, the latest extension applies to “Tax Audit, Tax Investigation and Desk review assessments, Approved instalment payment plans under Voluntary Assets and Income Declaration Scheme (VAIDS) yet to be fully liquidated.”
He added: “Taxpayers are advised to note that there will be no further extension of this palliative measure.”
