Nigeria's Cash Outside Banks Drops to N5.20 Trillion

In February 2026, cash held outside banks in Nigeria moderated to N5.20 trillion, a decrease of N0.058 trillion, indicating reduced demand for physical cash compared to the end-of-year spending surge. The Central Bank of Nigeria (CBN) published data showing a significant decline in money supply, which fell to N123.14 trillion in February from N123.35 trillion in January.

The total currency in circulation remained broadly stable at N5.73 trillion, reflecting steady system-wide liquidity conditions, even as excess cash returned to banks. This moderation in cash outside banks follows a month of elevated withdrawals driven by festive activities, highlighting the tendency for cash usage in Nigeria to spike during festive periods.

Historical data indicates a steady build-up of cash holdings during the final quarter of 2025, reinforcing the entrenched role of physical cash in the economy, despite the expansion of digital payment channels. The recent trend suggests that cash remains a dominant segment of Nigeria's liquidity cycle, with excess funds steadily returning to the banking system following seasonal surges.