Cash held outside Nigeria’s banking system increased to N4.87 trillion in August 2026, ending a three-month period of decline and signalling a renewed rise in the amount of physical currency circulating beyond banks.
The latest Central Bank of Nigeria data show that currency outside banks rose by N70.9 billion, or 1.48 per cent, from N4.80 trillion in July. The increase followed declines recorded in May, June and July.
Brandspur Banking News Desk reports that cash outside banks had fallen from N5.19 trillion in May to N4.92 trillion in June before reaching N4.80 trillion in July. Across those three months, the decline amounted to about N391.8 billion.
Despite August’s increase, the latest figure remains N381.3 billion below the N5.25 trillion recorded in January. On a year-on-year basis, however, currency outside banks was about N419 billion, or 9.4 per cent, higher than the N4.45 trillion recorded in August 2025.
Also read: https://brandspurng.com/2026/09/14/cbn-data-shows-nigerian-banks-closed-476-branches-in-three-years/
The longer-term figures show that cash holdings outside banks stood at N4.47 trillion in September 2025 before rising above N5 trillion by January 2026. The subsequent three-month fall was therefore followed by a modest reversal in August.
The movement comes as the CBN continues to promote digital payments and broader financial inclusion. Under its Nigeria Payment System Vision 2028, the apex bank is seeking to build on the growth of digital transactions while expanding access to formal financial services.
The CBN has set a target of reducing cash outside the banking system to below 40 per cent of total currency in circulation by 2028. It also aims to achieve financial inclusion for 95 per cent of Nigeria’s adult population within the same period.
Nigeria’s payment ecosystem has expanded considerably over the past decade, driven by instant payment systems, fintech platforms, mobile money and digital banking services.
Meanwhile, the broader monetary picture also points to continued expansion. Broad money supply, which includes currency outside banks alongside deposits and other monetary components, reached N139.38 trillion in August 2026, up 16.4 per cent from N119.69 trillion a year earlier.
Net domestic assets also increased to N101.99 trillion in August from N101.07 trillion in July, representing a monthly rise of about N925.5 billion.
