Cash Outside Nigerian Banks Rises to N4.92 Trillion
The Central Bank of Nigeria reports that physical cash held outside the banking system increased to N4.92 trillion in September 2026.
Physical cash held outside the banking system in Nigeria rose to N4.92 trillion in September 2026, marking an increase of N48.73 billion from August. Data from the Central Bank of Nigeria shows this growth occurred alongside a broader expansion in money supply, with broad money increasing to N146.6 trillion.
This trend follows a September decision by the central bank to cut its benchmark interest rate by 350 basis points to 23 percent, the largest reduction since 2006. Despite this policy shift, a significant portion of the currency remains outside formal financial institutions. As of June, the share of cash held outside banks stood at approximately 89%.
The central bank aims to reduce this share to below 40% by 2028 to improve digital payment adoption and inflation control. While the bank has not specified the cause for the September increase, analysts point to insecurity, a preference among small traders to avoid taxes and digital fees, and lingering distrust following the 2023 cash shortage.
