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| Nigeria central bank(CBN) |
The amount of cash held outside Nigeria’s banking system increased to N4.87 trillion in August 2026, reversing a three-month decline, according to the latest data from the Central Bank of Nigeria (CBN).Read original
CBN data showed that currency outside banks rose from N4.80 trillion in July to N4.87 trillion in August, representing an increase of N70.9 billion, or 1.48 per cent, within one month.
The latest increase came after cash outside the banking system had declined steadily for three consecutive months.
It fell from N5.19 trillion in May to N4.92 trillion in June, before dropping further to N4.80 trillion in July. Overall, the three-month decline amounted to about N391.8 billion.
What the CBN Data Shows
The latest figures indicate that cash held outside banks has fluctuated significantly throughout 2026.
Currency outside banks stood at N5.25 trillion in January and N5.19 trillion in February. It later rose to N5.08 trillion in April and returned to N5.19 trillion in May.
The downward trend then began in June, with the figure falling to N4.92 trillion, followed by N4.80 trillion in July.
Although August recorded a monthly increase, the amount remained about N381.3 billion below the N5.25 trillion recorded in January 2026.
On a year-on-year basis, however, currency outside banks increased by approximately N419 billion, or 9.4 per cent, from N4.45 trillion recorded in August 2025.
The longer-term figures also show that cash outside the banking system has increased considerably since September 2025, when it stood at about N4.47 trillion, before climbing above the N5 trillion mark in January 2026.
CBN Pushes Digital Payments
The latest rise comes as the CBN continues to promote digital payments, financial inclusion and reduced dependence on physical cash.
At the launch of the Nigeria Payment System Vision 2028 in Abuja, CBN Governor Olayemi Cardoso said the roadmap would build on the country's progress in digital payments while supporting a more inclusive and technology-driven financial system.
As part of the strategy, the apex bank is targeting a reduction in the proportion of currency circulating outside the banking system to below 40 per cent of total currency in circulation.
The CBN also has a target of achieving 95 per cent financial inclusion among Nigeria's adult population by 2028.
Nigeria has experienced significant growth in digital financial services in recent years, driven by fintech companies, mobile money platforms, instant payment systems and digital banking.
Nigeria's Money Supply Also Rises
The latest CBN figures come shortly after data showed that Nigeria's broad money supply, known as M3, rose to N139.38 trillion in August 2026.
That represents a 16.4 per cent increase from the N119.69 trillion recorded in August 2025.
Broad money includes currency in circulation outside banks, demand deposits, savings and time deposits, as well as foreign currency deposits.
Meanwhile, net domestic assets increased to N101.99 trillion in August from N101.07 trillion in July, representing a monthly increase of about N925.5 billion.
