Nigeria's Cash Outside Banks Grows to N4.87 Trillion in August

In August 2026, cash held outside Nigeria's banking system increased to N4.87 trillion, marking a rise of N70.9 billion or 1.48% from July's N4.80 trillion. This rebound follows a decline from N5.19 trillion in May to N4.80 trillion in July, totaling a reduction of approximately N391.8 billion.

Despite the increase, the August figure is still N381.3 billion lower than the N5.25 trillion recorded in January. However, compared to August 2025, cash outside banks has risen by about N419 billion, or 9.4%.

Financial analyst Tunde Ayileka cautioned that this increase should not be interpreted as a definitive shift back to cash, as monthly fluctuations can be influenced by seasonal demand, economic activity, and the informal economy's reliance on cash. Additionally, the Central Bank of Nigeria reported that the broad money supply (M3) rose to N139.38 trillion in August, reflecting a 16.4% increase from the previous year.