Cash held outside Nigeria’s banking system has declined to its lowest level in seven months in June 2026, reflecting a gradual return of physical currency to deposit money banks amid the Central Bank of Nigeria’s efforts to deepen digital payments.
The latest Money and Credit Statistics released by the CBN showed that currency outside banks fell to N4.92tn in June from N5.19tn in May. An analysis of the data by The PUNCH showed that cash held outside banks dropped by N485.80bn, or 8.98 per cent, from N5.41tn recorded in December 2025 to N4.92tn in June 2026.
The June figure represents the lowest level since November 2025, when currency outside banks stood at N4.91tn. The decline comes as the apex bank continues to promote electronic payments and financial inclusion as part of efforts to reduce the economy’s dependence on cash transactions.
The CBN data also showed that total currency in circulation declined from N5.73tn in December 2025 to N5.52tn in June 2026, representing a decrease of N209.56bn, or 3.66 per cent.
The sharper decline in cash outside banks, compared with the reduction in total currency in circulation, suggests that a larger proportion of physical cash was returned to the banking system rather than withdrawn permanently from circulation.
