Cash Outside Banks Drops To N4.92trn As Currency In Circulation Falls To N5.52trn

• Currency in circulation in Nigeria declined by N166.68 billion to N5.52 trillion in June 2026, down from N5.69 trillion in May.

• Cash held outside the banking system fell to N4.92 trillion from N5.19 trillion, indicating more money returned to banks.

• CBN says its new Payment System Vision 2028 targets below 40% cash outside banks and 95% financial inclusion by 2028.

Nigeria’s currency in circulation fell to N5.52 trillion in June 2026, from N5.69 trillion recorded in May, according to data released by the Central Bank of Nigeria, CBN.

The figure represents a month-on-month decline of N166.68 billion, reflecting a moderation in cash held within the economy.

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Data from the apex bank also showed that currency outside banks — cash held by households, businesses and individuals outside the formal financial system — dropped to N4.92 trillion in June, from N5.19 trillion in May.

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Despite the monthly decline, currency in circulation remains higher than a year ago. It stood at N5.008 trillion in June 2025, indicating a year-on-year increase of N515.78 billion, or 10.30 percent.

Bank reserves increased by N233.23 billion, or 0.69 percent, to N33.996 trillion in June, up from N33.763 trillion in May, while the CBN’s Special Intervention Reserve remained unchanged at N329.39 billion.

The decline in cash outside banks suggests more physical currency returned to the banking system during the period, supporting the CBN’s objective of improving liquidity management and reducing cash circulating outside regulated channels.

The apex bank has in recent years intensified efforts to promote digital payments and reduce reliance on physical cash, driven by the expansion of instant payment platforms, mobile banking applications, fintech companies and agent banking networks.

However, cash still dominates transactions in several segments of the economy, including retail markets, transportation, informal trade and rural communities.

The CBN recently unveiled the Nigeria Payment System Vision (PSV) 2028, a roadmap designed to modernise the country’s payment ecosystem and deepen financial inclusion.

The framework targets a reduction in the proportion of cash circulating outside the banking system to below 40 percent of total currency in circulation by 2028, and aims to achieve 95 percent financial inclusion among Nigeria’s adult population by 2028.

The plan also seeks to position Nigeria as Africa’s leading digital payments hub, with more than 10 million QR-code and tap-to-pay acceptance points planned across markets, transport hubs, commercial centres and rural communities.

CBN Governor, Mr. Olayemi Cardoso, said the strategy builds on Nigeria’s achievements in digital payments while positioning the country for a more inclusive, secure and technology-driven financial system.

The development comes as Nigeria’s broad money supply rose to N133.25 trillion in June 2026 from N129.21 trillion in May.