Currency Outside Banks Tapers to N4.49trn, Now 90% of Cash in Circulation

The amount of currency outside the formal banking system in Nigeria decreased to N4.49 trillion in June 2025 from N4.5 trillion in May, accounting for 90% of the total cash in circulation (CIC). This data, according to the Central Bank of Nigeria (CBN), marks the first notable easing in two months after a steady increase in cash supply over the past year.

The trend of cash outside banks has been on the rise, reaching a peak of N5.2 trillion in December 2024, driven by festive spending. However, from January 2025, there has been a gradual correction in the amount of cash outside banks, with the CIC falling to N4.49 trillion in June 2025.

This shift highlights the implications for monetary policy effectiveness and the scale of unbanked liquidity in the economy. The CIC trend shows a seasonal expansion followed by a gradual correction, with 93% of the total CIC held outside banks.