Cash Outside Banks Falls by ₦486bn as CBN Cashless Policy Gains Momentum
Nigeria recorded a significant decline in the volume of cash held outside the banking system in June 2026, with the figure dropping by ₦486 billion to a seven-month low, reflecting the growing impact of the Central Bank of Nigeria’s (CBN) cashless policy and financial inclusion initiatives.
According to the latest Money and Credit Statistics released by the apex bank, currency outside banks fell to ₦4.92 trillion in June from ₦5.41 trillion recorded at the end of December 2025. The decline represents an 8.98 per cent reduction over the six-month period and marks the lowest level since November 2025.
The report also showed that total currency in circulation declined to ₦5.52 trillion from ₦5.73 trillion within the same period. Analysts noted that the sharper drop in cash outside banks compared with the overall decline in currency in circulation indicates that more Nigerians are returning physical cash to the formal banking system, thereby improving liquidity available to commercial banks.
Financial experts attributed the development to increased adoption of electronic payment channels, mobile banking, agency banking services and other digital financial solutions. They said the sustained expansion of digital payment infrastructure has encouraged individuals and businesses to rely less on cash transactions while boosting confidence in the country’s financial system.
The reduction in cash outside banks is also expected to strengthen the effectiveness of monetary policy by enabling the Central Bank to exercise greater control over money supply. Economists believe the trend could improve financial intermediation, enhance access to credit and support broader economic growth by encouraging more funds to remain within the banking sector.
The latest figures align with the CBN’s Nigeria Payments System Vision 2028, which seeks to accelerate financial inclusion, deepen the use of digital payment platforms and reduce the volume of cash circulating outside the formal banking system. Industry stakeholders say continued investment in payment technology, cybersecurity and financial literacy will be critical to sustaining the momentum and achieving the country’s long-term cashless economy objectives.
