Currency held outside the formal banking system in Nigeria moderated to N4.49 trillion in June 2025, down from N4.63 trillion in May, according to the latest data from the Central Bank of Nigeria (CBN).
Despite the decline, cash outside banks (CoB) continued to dominate the country’s liquidity profile, accounting for about 90 per cent of total currency in circulation.
The report showed that overall currency in circulation (CIC) closed at N5.01 trillion in June, slightly above the N5.00 trillion recorded in May. The moderation marked the first notable easing in two months, following a steady rise in cash supply earlier in the year.
Over the past 12 months, CoB has maintained a strong upward trajectory. It grew from N3.79 trillion in June 2024 to a peak of N5.13 trillion in December 2024, largely fuelled by festive season spending.
Between July and November 2024, out-of-bank cash expanded consistently, rising from N3.66 trillion in July to N4.65 trillion in November, underscoring the country’s persistent reliance on cash for transactions.
The trend shifted at the start of 2025, with CoB easing to N4.74 trillion in January and further down to N4.52 trillion in February, reflecting adjustments in liquidity conditions.
Analysts say while June’s moderation is a positive sign, the dominance of cash outside the banking system continues to pose challenges to monetary policy and financial inclusion efforts.
