Cash Held Outside Nigerian Banks Grows to N4.92tn in September

Cash held outside Nigeria’s banking system increased to N4.92tn in September 2026, rising by N48.73bn from N4.87tn recorded in August, according to data published by the Central Bank of Nigeria (CBN).

According to a report by Punch News on Thursday, October 22, 2026. The figures show a continued increase in the amount of physical cash circulating outside the formal banking system, alongside growth in the country’s overall money supply.

Data from the apex bank’s website showed that Nigeria’s broad money supply rose to N146.6tn in September, representing an increase of N7.51tn from N139.09tn in the preceding month.

Broad money comprises physical currency, demand deposits, savings and time deposits, as well as foreign currency deposits held within the financial system.

The CBN figures also indicated that narrow money, which includes currency in circulation and highly liquid deposits, increased to N44.05tn in September from N43.11tn in August.

The rise in cash outside banks came amid a broader expansion in money supply, which climbed by 18.3 per cent from N123.95tn in January to N146.6tn in September.

The increase means more cash was held outside the banking system during the period, although the data alone does not establish the reasons behind the change or indicate how much of the additional money was used for spending.

The development followed the CBN’s decision in September to reduce its benchmark interest rate by 350 basis points, bringing it down to 23 per cent from 26.5 per cent.

The rate cut was reported as the largest reduction in the benchmark rate since December 2006.

Changes in the benchmark rate influence borrowing costs and returns on savings, although their effects on lending, consumption and investment depend on how banks and other market participants respond.

Despite lowering the benchmark rate, the Monetary Policy Committee retained the Cash Reserve Requirement (CRR) for commercial banks at 45 per cent and merchant banks at 16 per cent.

The committee also maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

The CRR determines the proportion of eligible deposits banks must keep with the CBN rather than use for lending and other activities. Maintaining the existing requirements alongside the rate cut means that key reserve restrictions remained unchanged.

The latest figures highlight the expansion in Nigeria’s monetary aggregates in 2026, with broad money, narrow money, and cash held outside banks all recording increases between August and September.

However, further data would be needed to determine whether the trend reflects stronger economic activity, changing payment habits, inflation-related pressures, or other factors affecting demand for cash.

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