Cash held outside Nigeria’s banking system fell by N197.68bn in one month to N5.21tn in January 2026, even as the amount of money circulating in the economy remained broadly flat, and bank reserves dropped sharply, according to the latest Money and Credit Statistics released by the Central Bank of Nigeria.
The figures showed that currency outside banks declined from N5.41tn in December 2025 to N5.21tn in January 2026, representing a month-on-month drop of N197.68bn.
This came as total currency in circulation slipped marginally by N1.74bn to N5.731tn in January 2026 from N5.732tn in the preceding month.
Despite the monthly decline in cash held outside the banking system, the data indicated that a very large share of Nigeria’s physical cash remained outside deposit money banks.
The proportion of currency in circulation that was held outside banks stood at 90.91 per cent in January 2026.
The latest reading suggests that while some cash returned to the banking system between December and January, the broader structure of cash usage in the economy remained heavily tilted towards cash retention outside formal banking channels.
