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The Central Bank of Nigeria (CBN) revealed that cash circulating outside the banking system fell from N5. 41 trillion to N4.92 trillion in the six month period starting December 2025 and June 2026
The CBN, in its latest report entitled ‘Money and Credit Statistics’, attributed the decline to the increasing use of electronic payments or digital platforms by Nigerians to transact business.
Money and Credit Statistics show the volume of cash outside the Nigerian banking system slumped to N4.92 trillion in June, the lowest level in seven months. The latest figures mark a significant pullback from the spike in cash levels recorded at the end of last year.
Further analysis of the data shows that total money in circulation fell from N5.73 trillion in December 2025 to N5.52 trillion in June 2026, a decrease of N209.56 billion or 3.66 percent.
Currently, more than 10 million QR codes and tap-to-pay payment acceptance points are expected to be deployed across markets, transportation hubs, rural communities, and commercial centers across the country. QR codes are a digital payment system that relies on codes to complete transactions
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In terms of value, Nigeria’s digital payments ecosystem exceeded stakeholders’ expectations, reaching N1.07 quadrillion in one year. Quadrillion is a very large number, meaning 1,000,000,000,000,000 (one thousand trillion).
Driven by the Nigerian Inter-Bank Settlement System (NIBSS) technological architecture, the country is cementing its status as a major digital financial center on the African continent, drastically surpassing traditional banking methodologies.
The amount of cash outside banks also points to a purge of cash being lost into the banking system and the apex bank’s push to encourage digital payments and cut cash transactions.
Industry data shows ex-bank currency declined by N485.80 billion or 8.98 per cent of available cash status in a coverage period of over six months.
The June figure was the lowest since November 2025, when cash outside banks reached N4.91 trillion.
The faster decline in the amount of cash held outside banks compared to total money in circulation suggests that the majority of physical cash was deposited back into commercial banks during the period rather than being permanently withdrawn from circulation.
Monthly statistics show that ex-bank currency fell from N5.41 trillion in December to N5.25 trillion in January before falling further to N5.19 trillion in February.
The figure in April stood at N5.08 trillion, followed by N5.19 trillion recorded in May.
Compared with June 2025, this ratio also decreased by 0.63 percentage points, indicating gradual improvement in formal cash intermediation despite an overall increase in currency circulating in the economy.
