The volume of physical cash held outside the formal banking system climbed to 4.92 trillion naira by September 2026, maintaining a dominant grip on the nation liquidity. According to recent data released through the Central Bank of Nigeria money and credit statistics, this figure accounts for nearly 89.23 percent of the total currency in circulation, which currently stands at 5.52 trillion naira.
A closer look at the figures shows that cash outside vaults increased by over 10 percent compared to the same period last year, moving up from the 4.47 trillion naira recorded in September 2025. On a monthly scale, the numbers nudged upward by one percent from the 4.87 trillion naira registered in August. Even though more physical money continues to sit outside banking halls, its overall share of the circulating cash pool experienced a slight dip, sliding from 90.15 percent down to 89.23 percent.
Total currency in circulation experienced an 11.40 percent annual expansion, climbing from 4.95 trillion naira to reach 5.52 trillion naira, alongside a 1.50 percent rise from the 5.44 trillion naira recorded in August. However, when looking back at the start of the year, a different financial pattern emerges. Since January, when cash outside banks stood at 5.25 trillion naira, there has actually been a contraction of 6.28 percent, while the overall currency in circulation dropped from 5.73 trillion naira to 5.52 trillion naira, representing a 3.73 percent decline. This indicates that while cash availability remains heavy, the market has pulled back slightly from the peak liquidity witnessed at the beginning of the year.
Providing further insight into the broader macroeconomic landscape, Physical cash is playing a diminishing role relative to the country expanding money supply. Currency in circulation accounted for just 3.76 percent of the broad money measure known as M3 by the end of September 2026, down from 4.21 percent in September 2025. This reduction happened because the broad money supply surged by 24.47 percent over the year to hit 146.60 trillion naira from 117.78 trillion naira, vastly outpacing the growth rate of physical currency. On a monthly comparison, M3 increased from 139.09 trillion naira in August to 146.60 trillion naira in September, driving the proportion of currency in circulation down from 3.91 percent to 3.76 percent and underscoring a broader shift in national liquidity dynamics.
