Cash Outside Banks Drops N104.76 Billion After Rate Cut

Cash held outside Nigeria's banking system fell by N104.76 billion from February to April 2026, dropping from N5.19 trillion in February to N5.08 trillion in April. This decline followed the Central Bank of Nigeria's decision to reduce the monetary policy rate (MPR) from 26.5% to 25.5% during the first Monetary Policy Committee (MPC) meeting of the year.

The decrease represents a 2.02% reduction over the two-month period. However, the Central Bank did not publish currency data for March 2026, making month-to-month comparisons impossible.

The total currency in circulation also decreased by N63.46 billion, indicating a decline from N5.71 trillion in February to N5.65 trillion in April. Despite the reduction in the benchmark interest rate, cash transactions remain dominant in the Nigerian economy.

Additionally, bank reserves increased significantly, rising to N4.88 trillion in April 2025, reflecting a 16.43% year-on-year increase, suggesting banks are retaining stronger liquidity buffers.