Nigeria's Currency Outside Banks Declines by 3.66% in January

In January 2026, the currency outside the banking system in Nigeria recorded a decline of 3.66%, while the total currency in circulation saw a marginal decrease of 0.03%. This decline reflects typical seasonal cash demand patterns associated with year-end spending.

The latest monetary credit statistics released by the Central Bank of Nigeria (CBN) suggest that overall liquidity conditions in the economy remain broadly stable despite post-festive adjustments. The cash held outside the banking system continues to dominate Nigeria's monetary landscape, underscoring the country's persistent reliance on physical cash transactions, particularly within the informal sector.

The decline in January follows a typical seasonal pattern where cash demand sharply rises during the festive period, leading to increased consumer spending. As households and businesses return excess cash to the banking system, the review of currency held outside banks over the past year shows fluctuations but generally elevated trends, reflecting year-end liquidity build driven by festive spending.