Cash held outside Nigeria’s banks increased to N4.92 trillion in September 2026, accounting for nearly nine out of every N10 in circulation, as the country’s broad money supply rose to N146.60 trillion. According to the Central Bank of Nigeria’s money and credit statistics, currency outside banks increased by N48.73 billion, or one per cent, from N4.87 trillion in August.

The September figure also exceeded the N4.80 trillion recorded in July by N119.87 billion, showing a continued increase in physical cash held outside banks over the three months. Meanwhile, broad money supply, measured by M3, expanded by N7.51 trillion, or 5.4 per cent, from N139.09 trillion in August.

The figures show the continued importance of physical cash in Nigeria’s economy, alongside the much larger pool of money held in deposits and other financial instruments.

Nearly nine in N10 outside banks

Total currency in circulation stood at N5.52 trillion in September, up from N5.44 trillion in August. Of that amount, N4.92 trillion, or 89.23 per cent, was outside banks, leaving about N594.33 billion within banks.

The CBN defines currency in circulation as notes and coins outside its own vaults, including cash held by the public and in deposit money banks’ vaults. Currency outside banks excludes the cash held by those banks.

Although the amount outside banks increased in September, its share of total circulating currency fell slightly to 89.67 per cent from 89.67 per cent in August. This was because total currency in circulation grew faster than cash outside banks.

According toEFInA’s 2026 Access to Financial Services survey, 21 per cent of Nigerian adults were financially excluded, even as formal financial inclusion improved to 79 per cent from 64 per cent in 2023.

The same survey found that formal inclusion reached 73%, or roughly 87.2 million adults, exceeding the 70% target set under the National Financial Inclusion Strategy. Cash remains useful for everyday transactions because it can be exchanged immediately without an internet connection, a bank account or an electronic payment device.

Money supply expands

The increase in physical cash was relatively modest compared with the N7.51 trillion expansion in broad money supply.

A breakdown of the September figures showed that CBN bills held by money-holding sectors increased to N5.60 trillion from N9.68 billion in August. That N5.59 trillion increase accounted for about 74.4 per cent of the monthly rise in M3 (a wider measure of money that includes currency outside banks, deposits, and qualifying financial instruments).

M2, which excludes CBN bills, rose more slowly, increasing by 1.38 per cent to N141 trillion from N139.08 trillion.

Demand deposits increased to N39.12 trillion from N38.24 trillion, while narrow money, or M1, which combines currency outside banks and demand deposits, rose to N44.05 trillion from N43.11 trillion.

Government credit rises as business credit falls

The wider monetary expansion coincided with higher net credit to the government and a decline in outstanding private sector credit. Net credit to the government rose by N6.36 trillion to N39.40 trillion in September from N33.04 trillion in August.

Private sector credit fell by N537.61 billion, to N83.93 trillion from N84.47 trillion.

Banks’ reserves declined by N28.50 billion to N36.04 trillion in September from N36.07 trillion in August. The September figure was also below the N36.73 trillion recorded in July, showing a second consecutive monthly decline.