By Abubakar Ojima-ojo
Cash held outside Nigeria’s banking system rose to N4.92tn in September 2026, an increase of N48.73bn from the N4.87tn recorded in August, according to data from the Central Bank of Nigeria.
The latest increase marked the second consecutive monthly rise in cash outside banks, following an increase from N4.80tn in July to N4.87tn in August.
The figures also showed that cash outside banks increased by N458.22bn year-on-year, from N4.47tn in September 2025 to N4.92tn in September 2026.
However, the amount remained below the N5.19tn recorded in May 2026 before declining over the following two months.
The CBN data further showed that total currency in circulation rose to N5.52tn in September from N5.44tn in August.
Cash outside banks accounted for 89.23 per cent of the total currency in circulation during the month, compared with 89.67 per cent in August.
The figures indicate that most of the currency in circulation remained outside the banking system, although the data alone do not explain why Nigerians held the cash or whether the trend reflected reduced confidence in banks.
Meanwhile, broad money supply increased by N7.51tn to N146.6tn in September from N139.09tn in August.
Demand deposits also rose by N888.35bn to N39.12tn from N38.24tn during the period.
Credit to the Federal Government increased by N6.36tn to N39.4tn, while credit to the private sector fell by N537.61bn to N83.93tn.
The contrasting movements showed that while broad money supply and government credit increased, lending to the private sector declined in September.
