Cash held outside Nigeria’s banking system increased by ₦48.7 billion to ₦4.92 trillion in September 2026, despite ongoing efforts by the Central Bank of Nigeria to deepen digital payments and reduce dependence on physical cash.
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Latest CBN data showed that currency outside banks rose from ₦4.87 trillion in August to ₦4.92 trillion in September, representing a month-on-month increase of about one per cent.
The September figure was also higher than the ₦4.47 trillion recorded in the corresponding period of 2025, representing a year-on-year increase of approximately 10.3 per cent.
The data showed that cash outside the banking system has fluctuated considerably over the past year. It increased from ₦4.45 trillion in August 2025 to ₦4.47 trillion in September and ₦4.65 trillion in October before climbing to ₦5.41 trillion in December 2025.
The figure subsequently declined to ₦5.25 trillion in January 2026 but remained above ₦5 trillion in February, April and May, reaching ₦5.19 trillion in May.
Cash outside banks dropped to ₦4.92 trillion in June before declining further to ₦4.80 trillion in July. It then increased to ₦4.87 trillion in August and ₦4.92 trillion in September.
Despite September’s increase, the amount of cash outside banks remained below levels recorded during several of the first five months of 2026, when the figure exceeded ₦5 trillion.
The development comes as the CBN pursues measures aimed at expanding electronic payments, increasing financial inclusion and reducing the proportion of physical currency held outside formal financial institutions.
At the launch of the Nigeria Payment System Vision 2028 in Abuja, CBN Governor Olayemi Cardoso said the strategy was designed to consolidate Nigeria’s progress in digital payments while accelerating the transition towards a more inclusive and technology-driven financial system.
Under the roadmap, the apex bank is seeking to reduce cash outside banks to below 40 per cent of total currency in circulation.
The CBN is also targeting financial inclusion for 95 per cent of Nigeria’s adult population by 2028.
Nigeria’s digital payment system has expanded over the years through fintech platforms, mobile money services, instant payment systems and digital banking channels, but the September data indicates that physical cash continues to play a substantial role in economic transactions.
The increase in currency outside banks does not, however, necessarily mean that Nigerians are reducing their use of electronic payment channels. The data measures the volume of physical cash being held outside the banking system rather than the volume or value of digital transactions.
Consequently, the proportion of currency remaining outside formal banking institutions will remain one of the indicators for assessing the CBN’s progress towards its Payment System Vision 2028.
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