Cash held outside Nigeria’s banking system rose to ₦4.92 trillion in September 2026, accounting for 89.23 per cent of the country’s ₦5.52 trillion currency in circulation, according to the Central Bank of Nigeria’s Money and Credit Statistics.
The figures indicate that a substantial proportion of physical cash in the economy remains outside the formal banking system, even as the overall stock of currency continues to expand.
An analysis of the data shows that currency outside banks increased by 10.26 per cent year-on-year, from ₦4.47 trillion in September 2025 to ₦4.92 trillion in September 2026.
On a month-on-month basis, the amount rose by approximately one per cent from ₦4.87 trillion in August.
Despite the increase in the absolute value of cash held outside banks, its share of total currency in circulation declined from 90.15 per cent in September 2025 to 89.23 per cent in September 2026.
This suggests that currency held within the banking system grew at a comparatively faster rate over the period, although cash outside banks continued to account for the overwhelming majority of currency in circulation.
Currency in circulation expands
The CBN data showed that currency in circulation rose to ₦5.52 trillion in September 2026, up from ₦4.95 trillion in the corresponding period of 2025.
The increase of approximately ₦570 billion represents year-on-year growth of 11.40 per cent.
On a monthly basis, currency in circulation increased by 1.50 per cent from ₦5.44 trillion in August 2026.
Currency in circulation covers physical cash held by the public and cash held within banks. Currency outside banks, by contrast, refers to notes and coins held by individuals and businesses beyond the banking system.
The distinction is important because growth in total currency does not necessarily mean that the same proportion of cash is being used for transactions through formal financial institutions.
Implications for digital payments and monetary policy
The continued concentration of cash outside banks presents a challenge for efforts to deepen financial inclusion, expand digital payments and improve the visibility of transactions across the economy.
A high volume of cash held outside banks may reflect a combination of factors, including preferences for cash transactions, limited access to convenient banking services in some locations, the structure of informal economic activity and the costs or reliability of digital payment channels.
However, the CBN figures alone do not establish why individuals and businesses are holding cash outside banks or how much of it is being used for everyday transactions.
For monetary authorities, movements in currency in circulation remain an important indicator to monitor alongside broader measures of money supply, credit, deposits and payment activity.
The September figures therefore present a mixed picture: cash outside banks continues to increase in value, but its proportion of total currency in circulation has eased slightly over the past year.
