Cash Outside Banks Drops by N198bn in January 2026

In January 2026, cash held outside Nigeria's banking system fell by N197.68 billion, reaching N5.21 trillion, down from N5.41 trillion in December 2025. This represents a month-on-month decline, while the total currency in circulation decreased marginally to N5.73 trillion from N5.732 trillion.

Despite this decline, 90.91% of the currency was held outside banks, indicating a significant reliance on physical cash. Year-on-year, cash outside banks increased by N473 billion compared to January 2025.

The broader money supply, referred to as M3, also contracted by N1.05 trillion to N123.36 trillion, primarily due to a drop in Nigeria's net foreign assets, which fell to N29.61 trillion from N31.51 trillion in December 2025. This decline in net foreign assets reflects a reduction in foreign holdings within the banking system, occurring during a period when the naira strengthened against the dollar.