Currency outside banks in Nigeria surged to a record high of N4.29 trillion in October 2024, accounting for 94.2 per cent of the total currency in circulation, data released by the Central Bank of Nigeria (CBN) has revealed.
This marks a notable 6.77 per cent increase from N4.02 trillion in September and a staggering 30.6 per cent rise since January.
The total currency in circulation, which includes cash held in banks and the public, also climbed to N4.55 trillion in October, up from N4.31 trillion in September and N4.14 trillion in August.
While circulation rose by 5.8 per cent month-on-month, the faster pace of growth in cash held outside banks highlights shifting trends in cash management across the country.
The proportion of currency outside banks relative to total circulation has steadily increased throughout the year, from 89.9 per cent in January to 94.2 per cent in October.
This narrowing gap suggests an ongoing preference for liquidity outside the formal banking system and reliance on cash-based transactions.
