Cash Outside Banks Drops to Seven-Month Low in Nigeria

In June 2026, cash held outside Nigeria's banking system decreased by N486 billion, reaching N4.92 trillion, the lowest level in seven months. This decline reflects the Central Bank of Nigeria's ongoing efforts to enhance digital payments and reduce reliance on cash transactions.

The Money and Credit Statistics from the Central Bank of Nigeria indicated that cash outside banks dropped by 8.98% from N5.41 trillion in December 2025. The total currency in circulation also fell from N5.73 trillion in December 2025 to N5.52 trillion in June 2026, marking a decrease of N209.56 billion, or 3.66%.

The data showed that cash outside banks accounted for 89.11% of total currency in circulation in June, down from 91.27% in May. This trend suggests a gradual increase in the share of cash retained within the formal banking system, with only 5.67% of currency in circulation held within banks at the end of 2025, rising to 10.89% by June 2026.