The Central Bank of Nigeria (CBN) has revealed that cash in circulation outside the banking system dropped from N5. 41 trillion to N4.92 trillion within a six months period spanning December 2025 and June 2026
CBN, in a recent report titled ‘Money and Credit Statistics’, attributed the reduction to the rising use of e-payments or digital platforms by Nigerians to transact business.
The Money and Credit Statistics showed the volume of cash outside Nigeria’s banking system dipped to N4.92 trillion in June, the lowest level in seven months. The latest figure marks a significant retreat from the surging cash levels recorded last year-end.
Further analysis of the data showed total currency in circulation dropped from N5.73 trillion in December 2025 to N5.52 trillion in June 2026, a decline of N209.56 billion or 3.66 per cent.
Already, more than 10 million QR-code and tap-to-pay acceptance points are expected to be deployed across markets, transport hubs, rural communities, and commercial centres nationwide. QR codes are digital payment systems that rely on codes to complete transactions
In terms of value, Nigeria’s digital payment ecosystem exceeded stakeholders’ expectations, hitting N1.07 quadrillion in one year. A quadrillion is a very large number that means 1,000,000,000,000,000 (one thousand trillion).
Driven by the technological architecture of the Nigeria Inter-Bank Settlement System (NIBSS), the nation is cementing its status as the premier digital finance hub on the African continent, drastically outpacing traditional banking methodologies.
The cash outside banks also indicates the mop-up of loose cash into the banking system and the apex bank’s push to drive digital payments and cut cash transactions.
Industry data showed currency outside banks declined by N485.80 billion or 8.98 per cent of the available cash status within the over six-month coverage period.
The June figure was the lowest since November 2025, when cash outside banks stood at N4.91 trillion.
The faster decline in cash held outside banks compared with total currency in circulation indicates that a larger proportion of physical cash was deposited back into commercial banks during the period rather than being permanently withdrawn from circulation.
Month-on-month statistics showed that currency outside banks fell from N5.41 trillion in December to N5.25 trillion in January before declining further to N5.19 trillion in February.
The April figure stood at N5.08trillion, followed by N5.19 trillion recorded in May.
Compared with June 2025, the ratio also eased by 0.63 percentage points, suggesting a gradual improvement in formal cash intermediation despite the overall increase in currency circulating within the economy.
(Ripples)
