Cash outside banks in Nigeria rose to N4.87 trillion in August 2026, reversing a three-month downward trend, according to the latest data from the Central Bank of Nigeria (CBN). The figure increased from N4.80 trillion in July, representing a monthly rise of N70.9 billion, or 1.48%, as more cash returned to circulation outside the banking system.

The August increase comes after cash holdings outside banks fell steadily between May and July. The amount dropped from N5.19 trillion in May to N4.92 trillion in June, before declining further to N4.80 trillion in July. Altogether, the three-month decline amounted to about N391.8 billion, making the latest increase a notable reversal in the trend.

Despite the monthly rise, cash outside banks remained N381.3 billion below the N5.25 trillion recorded in January 2026. On a year-on-year basis, however, the figure increased by about N419 billion, or 9.4%, from N4.45 trillion recorded in August 2025. The data show that although cash holdings have fluctuated during the year, the amount of physical currency outside banks remains higher than it was a year earlier.

The latest development comes as the CBN continues to promote digital payments and financial inclusion across Nigeria. Under its Nigeria Payment System Vision 2028, the apex bank is targeting 95% financial inclusion among adults by 2028 and plans to reduce cash circulating outside the banking system to below 40% of total currency in circulation. The push is supported by the continued expansion of fintech platforms, mobile money, instant payments and digital banking services.

Meanwhile, Nigeria’s broader money supply has also continued to expand. CBN data showed that broad money supply (M3) reached N139.38 trillion in August 2026, up 16.4% from N119.69 trillion a year earlier. The movement in cash outside banks therefore remains an important indicator to watch as Nigeria balances rising money supply with its longer-term transition toward a more digital and financially inclusive economy.

source: nairametrics