The Central Bank of Nigeria (CBN) has revealed that N923.16 billion was withdrawn from the banking system by customers between May 2024 and May 2025, according to its latest Money and Credit Statistics report.
The data reflects a significant change in the volume of currency held outside banks, a trend that may indicate rising public preference for cash-based transactions amid ongoing economic shifts.
As of May 2025, currency held outside banks stood at N4.63 trillion, up from N4.57 trillion in April 2025, representing a 1.42% month-on-month increase.
Year-on-year, the figures show a 25% surge from N3.71 trillion in May 2024, pointing to an accelerating withdrawal of cash from bank vaults.
The total currency in circulation—comprising both bank-held cash and money outside banks—reached N5.01 trillion in May 2025. While this marks a negligible 0.0002% decrease from the previous month, it represents a 26.45% increase from N3.97 trillion recorded in May 2024.
Analysts suggest that the rising volume of cash held outside the banking system may reflect consumer distrust, informal sector growth, or preference for liquidity amid inflation and economic uncertainty.
The CBN is expected to respond with measures that promote financial inclusion, digital payments, and better cash management policies to balance liquidity and monetary stability.
