Cash Outside Banks Climbs to N4.92tn in September Despite CBN Digital Push

Cash held outside Nigeria’s banking system rose by N48.7 billion to N4.92 trillion in September 2026, despite the Central Bank of Nigeria’s (CBN) drive to expand digital payments and reduce reliance on physical currency.

The latest CBN figures showed that cash outside banks increased from N4.87 trillion in August, representing a month-on-month rise of about one per cent.

The September figure also marked a 10.3 per cent increase from the N4.47 trillion recorded in the corresponding period of 2025.

However, cash holdings remained below the levels recorded in several months earlier this year, when the amount outside banks exceeded N5 trillion.

The data showed that cash outside banks rose from N4.45 trillion in August 2025 to N4.47 trillion in September. It climbed to N4.65 trillion in October before reaching N5.41 trillion in December.

The figure subsequently fell to N5.25 trillion in January 2026 but remained above N5 trillion in February, April and May. By May, it stood at N5.19 trillion before dropping to N4.92 trillion in June.

Cash holdings recovered to N4.80 trillion in July and N4.87 trillion in August before recording another increase in September.

The latest rise comes as the CBN intensifies efforts to encourage electronic transactions, deepen financial inclusion and reduce the volume of physical cash circulating outside the banking system.

Speaking at the launch of the Nigeria Payment System Vision 2028 in Abuja, CBN Governor Olayemi Cardoso said the roadmap would build on Nigeria’s progress in digital payments.

Cardoso said the initiative would accelerate the development of a more inclusive, technology-driven financial system.

Under the strategy, the apex bank aims to bring cash outside banks below 40 per cent of total currency in circulation. It also targets financial inclusion for 95 per cent of Nigeria’s adult population by 2028.

Nigeria’s digital payment ecosystem has expanded over the past decade, supported by fintech companies, mobile money operators, instant payment platforms and digital banking services.

The CBN plans to build on this growth by strengthening payment infrastructure and extending formal financial services to more Nigerians.

Nevertheless, the September figures highlight the continued importance of physical cash in the country’s financial system, even as electronic payment channels gain wider acceptance.

The increase in cash outside banks does not necessarily indicate a decline in digital transactions. The figures measure cash held outside the banking system, not the volume or value of electronic payments.

The proportion of cash outside banks relative to total currency in circulation will therefore remain an important indicator as the CBN pursues its targets under the Nigeria Payment System Vision 2028.