Nigeria: Currency Outside Banks Rises 104 Percent in 3 Yrs - CBN

What the report says

Nigeria’s central bank data show that currency held outside the banking system continued to grow strongly over the past three years, underscoring the country’s enduring reliance on cash even as digital payments expand. According to the figures reported by Vanguard and distributed by AllAfrica, cash outside banks rose to N4.923 trillion in September 2026 from N2.416 trillion in September 2023, an increase of 103.8 percent.

The report says the amount also climbed by 10.3 percent year on year from N4.465 trillion in September 2025. The data suggest that physical cash remains widely used alongside mobile banking, electronic transfers and point-of-sale payments, despite efforts to deepen formal financial transactions.

The same CBN statistics showed that demand deposits increased over the period as well, reaching N39.124 trillion in September 2026 from N22.903 trillion in September 2023. That indicates more money is also being held in bank accounts that can be accessed for payments and withdrawals on demand.

An analyst quoted in the report said the parallel rise in deposits and cash reflects the coexistence of formal banking balances and substantial cash demand. The analyst added that the figures alone do not explain whether the shift is driven by inflation, informal activity, economic growth or changing payment preferences.