Cash held outside Nigeria’s banking system rose to N4.87 trillion in August 2026, reversing a three-month decline, latest Central Bank of Nigeria (CBN) data show.
Currency outside banks increased by N70.9 billion, or 1.48%, from N4.80 trillion in July to N4.87 trillion in August.
The August increase followed three consecutive monthly declines, during which cash outside banks fell from N5.19 trillion in May to N4.92 trillion in June and N4.80 trillion in July — a cumulative drop of about N391.8 billion.
Despite the latest increase, the August figure remained N381.3 billion below the N5.25 trillion recorded in January.
On a year-on-year basis, however, currency outside banks increased by about N419 billion, or 9.4%, from N4.45 trillion in August 2025.
The latest movement comes as the CBN continues to push digital payments and financial inclusion through its Nigeria Payment System Vision 2028.
The apex bank has set a target of reducing cash circulating outside the banking system to below 40% of total currency in circulation, while aiming to raise financial inclusion to 95% of the adult population by 2028.
The rise in cash outside banks also came amid continued expansion in Nigeria’s broader money supply.
CBN data showed that broad money supply, or M3, rose to N139.38 trillion in August from N138.78 trillion in July, representing a 16.4% increase from N119.69 trillion recorded a year earlier.
The August data indicate that while cash holdings outside banks remain below their early-year peak, physical currency demand recorded a modest rebound after three months of decline.
