Nigerians Hold N4.47 Trillion Cash Outside Banks, Impacting Money Supply

In September 2025, Nigerians held N4.47 trillion in cash outside banks, affecting the money supply despite a decrease in overall money supply. The Central Bank of Nigeria's data revealed a rise in physical cash holdings, with 90.2% of the total currency in circulation kept outside bank accounts.

This trend highlights structural weaknesses in Nigeria's financial system, attributed to high transaction costs, distrust in the banking sector, and limited digital platform penetration. The persistent reliance on physical money signifies a challenge for formal banking systems.