Cash Outside Banks Hits One-Year High of N5.19 Trillion, Accounts for 91.3% of Nigeria’s Currency in Circulation

Nigeria’s reliance on cash remains remarkably strong, as new data from the Central Bank of Nigeria (CBN) shows that cash held outside the banking system surged to N5.19 trillion in May 2026. The figure represents 91.3 per cent of the country’s total currency in circulation, which stood at N5.69 trillion during the period. The latest record marks the highest level of cash outside banks in the last 12 months, highlighting the enduring preference for physical cash among millions of Nigerians.

According to the CBN, currency outside banks increased by 12.1 per cent from N4.63 trillion recorded in May 2025 and rose by 2.2 per cent compared to the N5.08 trillion reported in April 2026. At the same time, only N497 billion, representing 8.7 per cent of total currency in circulation, remained within the banking system. The figures suggest that a significant portion of Nigeria’s money supply continues to be held by individuals, businesses and traders rather than deposited in banks.

The trend reflects a steady rise in cash usage over the past year despite occasional fluctuations. After dropping from N4.63 trillion in May 2025 to N4.42 trillion in July, cash outside banks gradually recovered and accelerated towards the end of the year. The figure reached N5.41 trillion in December 2025, driven largely by increased spending and commercial activities during the festive season, before settling at N5.19 trillion in May 2026.

Currency in circulation also maintained an upward trajectory, climbing from N5.01 trillion in May 2025 to N5.69 trillion in May 2026. Although there were slight declines in some months, the overall pattern points to sustained growth in the amount of cash available within the economy. The latest data reflects a 13.5 per cent year-on-year increase and a modest 0.8 per cent rise compared to April 2026, underscoring the continued expansion of money circulation across the country.

The development comes even as Nigeria records rapid growth in digital payment channels, including instant transfers, mobile banking, agency banking and point-of-sale transactions. However, experts note that cash remains the preferred means of payment in many parts of the economy, particularly within the informal sector, local markets, transportation services and rural communities. The latest CBN figures reinforce the reality that while digital finance is expanding, cash still plays a dominant role in the daily economic activities of millions of Nigerians.

source: This day