Nigeria's Cash Economy: Over 93% of Physical Cash Held Outside Banks in November 2025

The Central Bank of Nigeria's latest data reveals that in November 2025, N4.91 trillion of physical cash was held outside the formal banking system, out of a total currency circulation of N5.26 trillion. This trend has persisted throughout the year, with over 89% of cash remaining outside banks since January 2025.

The high ratio of cash outside banks signifies a structural feature of Nigeria's monetary landscape, reflecting a persistent preference for physical cash over formal banking channels. The rising trend in physical cash circulation suggests an increasing demand for cash transactions in the economy.