Nigeria's Currency Outside Banks Hits N5.19 Trillion

As of May 2026, the Central Bank of Nigeria (CBN) reported that currency held outside banks increased to N5.19 trillion, up from N5.08 trillion in April 2026, marking a month-on-month rise of N109.34 billion (2.15%). Yearly, this amount rose by N559.16 billion from N4.63 trillion in May 2025, translating to a 12.07% increase.

Despite efforts to encourage digital payments and improve financial inclusion, cash remains the preferred medium of exchange for many Nigerians, particularly in the informal sector. The CBN's statistics revealed that 91.27% of the total currency in circulation was outside formal banking channels in May 2026, slightly down from 92.40% in May 2025.

Additionally, bank reserves decreased to N33.763 trillion in May 2026 from N34.603 trillion in April 2026. Professor Mufutau Ijaiya noted that political factors, including the upcoming elections, contribute to the excess cash outside banks, as politicians withdraw funds for campaign purposes.