Cash held outside Nigeria’s banking system rose to N4.92tn in September 2026, while the country’s broad money supply expanded by N7.51tn in a month, highlighting the scale of cash circulation alongside the growth in money across the economy.
Central Bank of Nigeria data showed that cash outside banks increased by N48.73bn from N4.87tn in August, while broad money supply climbed from N139.09tn to N146.6tn over the same period.
The figures, reviewed by Brandspur Banking News Desk, also showed that narrow money, which includes physical currency and highly liquid deposits, rose to N44.05tn in September from N43.11tn a month earlier.
Cash held outside banks refers to physical naira notes held by individuals and businesses rather than within the banking system. Its increase does not, on its own, establish why people are holding more cash or whether the funds have been withdrawn from bank accounts during the month.
Money Supply Expands 18.3% Since January
Nigeria’s broad money supply rose by 18.3 per cent between January and September, increasing from N123.95tn to N146.6tn.
The measure covers currency in circulation and several types of deposits, including demand, savings, time and foreign currency deposits. Its expansion therefore reflects a wider pool of money in the financial system than physical cash alone.
The September figures show that cash outside banks accounted for N4.92tn of the country’s total broad money supply, while narrow money reached N44.05tn.
However, the available data do not establish how much of the increase in broad money translated into additional consumer spending, business investment or higher demand for goods and services.
Figures Follow CBN Interest Rate Cut
The latest monetary data came after the CBN reduced its benchmark interest rate by 350 basis points in September, bringing it down from 26.5 per cent to 23 per cent.
The Monetary Policy Committee also retained the cash reserve requirement at 45 per cent for commercial banks and 16 per cent for merchant banks. The 75 per cent reserve requirement on non Treasury Single Account public sector deposits was also maintained.
The rate reduction was the largest cut in the benchmark rate since December 2006, according to the report.
While the lower policy rate changes the central bank’s monetary policy stance, the September figures alone do not demonstrate that the decision caused the increase in cash outside banks or the wider expansion in money supply.
The coming months’ monetary data will help show whether these increases continue and how cash holdings and broader liquidity evolve.
