Cash held outside Nigeria's banking system rose to ₦4.923 trillion in September 2026
The amount of physical currency held outside Nigeria's banking system increased by 103.8 per cent to ₦4.923 trillion in September 2026, from ₦2.416 trillion recorded in September 2023, highlighting the continued importance of cash in the country's financial system despite the expansion of electronic payment channels.
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The latest figures from the Central Bank of Nigeria's (CBN) Money and Credit Statistics show that currency outside banks rose by 10.3 per cent year-on-year from ₦4.465 trillion in September 2025.
The increase means the value of cash held outside the banking system has more than doubled over three years, reflecting sustained demand for physical currency among households and businesses.
The development comes as the CBN continues to promote digital payments, strengthen financial inclusion and expand the use of formal banking services.
Cash Outside Banks Climbs Over Three Years
A breakdown of the CBN figures shows that currency outside banks increased from ₦2.416 trillion in September 2023 to ₦4.016 trillion in September 2024, representing a 66.2 per cent rise.
The amount subsequently increased to ₦4.465 trillion in September 2025, up 11.2 per cent from the previous year, before reaching ₦4.923 trillion in September 2026.
The latest annual increase of 10.3 per cent indicates that cash demand remains substantial, even as mobile banking, electronic transfers, point-of-sale terminals and other digital payment platforms become more widely used.
However, the figures measure the value of physical currency held outside banks. They do not establish how frequently Nigerians use cash or whether electronic payments have declined.
Demand Deposits Rise 71% in Three Years
The CBN data also show that demand deposits in the banking system increased by 70.8 per cent to ₦39.124 trillion in September 2026, from ₦22.903 trillion in September 2023.
Demand deposits rose to ₦31.842 trillion in September 2024, representing a 39 per cent increase from the corresponding period in 2023.
The figure subsequently climbed to ₦34.642 trillion in September 2025, up 8.8 per cent, before reaching ₦39.124 trillion in September 2026, representing a further annual increase of 12.9 per cent.
Demand deposits represent funds held in bank accounts that customers can access on demand, including balances used for transfers and other payments.
The simultaneous increase in demand deposits and currency outside banks points to the expansion of both bank-held funds and physical cash holdings.
Economic and communications expert Clifford Egbomeade said the two indicators reflect different components of monetary activity. He cautioned that their growth rates alone cannot establish whether the increase in cash holdings results from economic growth, inflation, informal transactions or changes in payment preferences.
What Rising Cash Holdings Mean for Nigeria's Economy
The continued increase in currency outside banks highlights the challenge of shifting economic activity towards formal banking and electronic payment channels.
Although Nigeria's digital payment infrastructure has expanded, cash remains important for everyday transactions, particularly among businesses and individuals who depend on physical payments.
The trend also raises questions about access to banking services, the reliability of digital payment infrastructure and the extent to which businesses and consumers can conveniently use electronic channels.
For policymakers, the challenge is not simply to increase digital payment adoption but to ensure that electronic transactions remain accessible, reliable and affordable across different segments of the economy.
Implications for Property Transactions and Real Estate
The persistence of cash in the wider economy also has implications for Nigeria's property market, where transactions can involve substantial payments for land acquisition, rent, property sales, agency services and construction-related activities.
Cash dependence can complicate transaction documentation and make it more difficult to establish clear payment records, particularly where parties do not use formal banking channels.
For property investors, developers and landlords, traceable electronic payments can improve financial records, support transaction transparency and make it easier to reconcile payments.
However, the CBN figures do not establish how much of the ₦4.923 trillion held outside banks is connected to property transactions. The data should therefore be understood as an indication of wider cash dependence rather than a direct measure of cash activity in the real estate sector.
The figures also highlight the importance of accessible payment infrastructure as Nigeria seeks to formalise more economic activity and strengthen financial inclusion.
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