Cash held outside Nigeria’s banking system increased to N4.87 trillion in August 2026, reversing three consecutive months of decline, according to the latest data from the Central Bank of Nigeria.
Currency outside banks rose from N4.80 trillion in July to N4.87 trillion in August, a monthly increase of N70.9 billion, or 1.48 per cent. The rebound followed a fall from N5.19 trillion in May to N4.92 trillion in June and N4.80 trillion in July, which together reduced cash outside banks by about N391.8 billion over three months.
Path Through the Year
Central Bank figures show that currency outside banks stood at N5.25 trillion in January and N5.19 trillion in February, before moving to N5.08 trillion in April and N5.19 trillion in May. It then declined for three straight months to N4.92 trillion in June and N4.80 trillion in July, before edging up again in August.
Despite the August increase, the amount remained N381.3 billion below the N5.25 trillion recorded in January. On a year-on-year basis, however, cash held outside banks rose by about N419.0 billion, or 9.4 per cent, from N4.45 trillion in August 2025.
Longer-term data also show a substantial rise from September 2025, when currency outside banks stood at N4.47 trillion, before climbing above N5 trillion in January 2026.
Digital Payments Push Continues
The latest increase comes as the Central Bank continues to promote a broader shift toward digital payments and greater financial inclusion. At the launch of the Nigeria Payment System Vision 2028 in Abuja, Governor Olayemi Cardoso said the roadmap would build on progress already made in digital payments while accelerating the development of a more inclusive and technology-driven financial system.
As part of that strategy, the apex bank aims to cut cash circulating outside the banking system to below 40 per cent of total currency in circulation. It is also targeting financial inclusion of 95 per cent of the adult population by 2028.
Nigeria has seen rapid growth in digital payments over the past decade, supported by fintech platforms, mobile money, instant payments and digital banking services.
Broader Money Supply Context
Nigeria’s broad money supply (M3) rose to N139.38 trillion in August 2026, a 16.4 per cent increase from N119.69 trillion in August 2025. Broad money covers funds available across the economy, including currency in circulation outside banks, demand deposits, savings and time deposits, and foreign currency deposits.
Net domestic assets increased to N101.99 trillion in August from N101.07 trillion in July, a rise of about N925.5 billion.
