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Cash held outside Nigeria’s banking system rose by N70.9 billion in August 2026, reversing three consecutive months of decline, according to the latest data from the Central Bank of Nigeria (CBN).
Currency outside banks increased by 1.48 per cent to N4.87 trillion in August, up from N4.80 trillion recorded in July.
The increase came after cash holdings outside banks declined steadily between May and July. The figure fell from N5.19 trillion in May to N4.92 trillion in June and further to N4.80 trillion in July, representing a cumulative decline of about N391.8 billion over the three-month period.
Despite the August rebound, the amount of cash outside the banking system remained below the level recorded at the beginning of the year. Currency outside banks stood at N5.25 trillion in January, meaning the August figure was still N381.3 billion lower.
The CBN data also showed that currency outside banks has increased on a year-on-year basis. The August 2026 figure was about N419 billion, or 9.4 per cent, higher than the N4.45 trillion recorded in August 2025.
The longer-term trend indicates that cash holdings outside banks increased significantly towards the end of 2025 and early 2026. Currency outside banks stood at N4.47 trillion in September 2025 before rising above N5 trillion in January 2026.
The latest increase comes amid the CBN’s efforts to promote digital payments, deepen financial inclusion and reduce reliance on physical cash.
At the launch of the Nigeria Payment System Vision (PSV) 2028 in Abuja, CBN Governor Olayemi Cardoso said the roadmap would build on the country’s progress in digital payments while accelerating the development of a more inclusive and technology-driven financial system.
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Under the strategy, the apex bank is targeting a reduction in cash circulating outside the banking system to below 40 per cent of total currency in circulation by 2028. The CBN is also targeting financial inclusion of 95 per cent of the adult population within the same period.
Nigeria has experienced significant growth in electronic payments in recent years, driven by fintech companies, mobile money operators, instant payment systems and digital banking platforms. However, the latest increase in currency outside banks suggests that cash remains an important part of economic activity.
Meanwhile, Nigeria’s broad money supply rose to N139.38 trillion in August 2026, representing a 16.4 per cent increase from N119.69 trillion recorded in August 2025.
Broad money includes currency in circulation, demand deposits, savings and time deposits, as well as foreign currency deposits and other monetary components.
Net domestic assets also increased to N101.99 trillion in August from N101.07 trillion in July, representing a monthly increase of about N925.5 billion.
Broad money includes currency in circulation, demand deposits, savings and time deposits, as well as foreign currency deposits and other monetary components.
Net domestic assets also increased to N101.99 trillion in August from N101.07 trillion in July, representing a monthly increase of about N925.5 billion.
The August rise in cash outside banks will therefore be closely watched in coming months as the CBN continues its efforts to expand digital payments and reduce the economy’s reliance on physical cash.
