Cash Outside Nigerian Banks Rises 104% in Three Years, CBN Data Shows

Currency held outside Nigeria’s banking system reached N4.923 trillion in September 2026, up from N2.416 trillion in September 2023, according to Central Bank of Nigeria figures reported on Tuesday, November 3.

The increase represents a rise of 103.8 per cent over three years. It was also 10.3 per cent higher than the N4.465 trillion recorded in September 2025, showing that substantial amounts of physical cash remain outside banks despite the growth of electronic payment services.

The CBN data also showed that demand deposits rose to N39.124 trillion in September 2026, compared with N22.903 trillion three years earlier. Demand deposits are funds held in bank accounts that customers can generally access on request, while currency outside banks refers to physical cash held beyond the banking system.

The figures point to the continued importance of cash in Nigeria’s financial system. However, they do not explain why people are holding more cash. Inflation, business activity, informal transactions and payment preferences may influence demand, but the statistics do not establish the contribution of each factor.

The development presents a challenge for efforts to expand financial inclusion and encourage digital payments. Mobile transfers and point-of-sale services have become more common, yet cash remains important for everyday transactions.

For policymakers and financial institutions, the figures underline the need to make digital payments reliable, accessible and affordable, including for people and businesses in areas with limited banking services.

The latest figures are based on the CBN’s money and credit statistics for September 2026. They describe cash held outside banks, not the total value of electronic transactions or proof that Nigerians are abandoning digital payments.

AdamaPope feedback-opera-news-app@opera.com