Cash held outside Nigeria’s banking system rose to N4.87 trillion in August 2026, reversing three consecutive months of decline.
This is according to the latest data from the Central Bank of Nigeria (CBN).
Currency outside banks increased from N4.80 trillion in July to N4.87 trillion in August, representing a monthly rise of N70.9 billion, or 1.48%.
The increase comes after cash outside banks fell from N5.19 trillion in May to N4.92 trillion in June and N4.80 trillion in July, bringing the three-month decline to about N391.8 billion.
What the data is saying
CBN data show that currency outside banks stood at N5.25 trillion in January and N5.19 trillion in February before rising to N5.08 trillion in April and N5.19 trillion in May.
The measure then declined for three consecutive months, falling to N4.92 trillion in June, N4.80 trillion in July and N4.87 trillion in August.
- Despite the August increase, cash outside banks remained N381.3 billion below the N5.25 trillion recorded in January.
- On a year-on-year basis, however, the amount of cash held outside banks increased by about N419.0 billion, or 9.4%, from N4.45 trillion in August 2025.
The longer-term data also show a significant increase from September 2025, when currency outside banks stood at N4.47 trillion. It subsequently climbed above N5 trillion in January 2026.
Get up to speed
The latest increase comes as the CBN continues to pursue a broader shift towards digital payments and greater financial inclusion.
- At the launch of the Nigeria Payment System Vision (PSV) 2028 in Abuja, CBN Governor Olayemi Cardoso said the roadmap would build on Nigeria’s progress in digital payments while accelerating the development of a more inclusive and technology-driven financial system.
- As part of the strategy, the apex bank aims to reduce cash circulating outside the banking system to below 40% of total currency in circulation.
The CBN is also targeting financial inclusion of 95% of the adult population by 2028.
Nigeria has recorded rapid growth in digital payments over the past decade, supported by fintech platforms, mobile money, instant payments and digital banking services.
What you should know
Earlier, Nairametrics reported that Nigeria’s broad money supply (M3) rose to N139.38 trillion in August 2026, representing a 16.4% increase from N119.69 trillion recorded in August 2025.
Broad money captures funds available across the economy, including currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
Net domestic assets rose to N101.99 trillion in August from N101.07 trillion in July, an increase of about N925.5 billion.