At N4.92tn, Cash Outside Banks Now 89.1% of Currency in Circulation

Nigeria's cash held outside the formal banking system has dipped below the 90% threshold for the first time in nearly a year. In June 2026, this figure stood at 89.1% of the total currency in circulation, down from 91.3% in May, according to the Central Bank of Nigeria (CBN).

This marks a significant shift, ending an 11-month period where cash outside banks consistently represented over 90% of the currency in circulation. The latest data reveals a decrease of N271 billion in cash held outside banks, bringing the total to N4.92 trillion in June. Concurrently, the overall currency in circulation also saw a reduction, falling by N167 billion to N5.52 trillion from N5.69 trillion the previous month.

A lower ratio of cash outside banks is generally seen as a positive indicator, suggesting increased liquidity within the banking system and a greater reliance on formal financial channels. This trend contrasts with the elevated levels observed over the past year, which saw the ratio peak at 94.3% in December 2025 during a period of traditionally high seasonal cash demand.