Cash held outside Nigeria’s banking system increased to ₦4.92 trillion in September 2026, rising by ₦48.73 billion from approximately ₦4.87 trillion recorded in August, according to monetary data from the Central Bank of Nigeria (CBN).
The increase coincided with a broader expansion in the country’s money supply, which climbed to ₦146.6 trillion in September from ₦139.09 trillion in August, representing a monthly increase of ₦7.51 trillion.
The CBN data also showed that narrow money, comprising physical currency and highly liquid deposits, rose to ₦44.05 trillion in September from ₦43.11 trillion a month earlier.
Overall, Nigeria’s broad money supply grew by approximately 18.3 per cent between January, when it stood at ₦123.95 trillion, and September 2026.
The figures emerged following the CBN’s September monetary policy decision to reduce its benchmark interest rate by 350 basis points, from 26.5 per cent to 23 per cent. It was the largest single reduction in the policy rate since December 2006, according to the report.
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Despite the rate cut, the Monetary Policy Committee retained the cash reserve requirement for commercial banks at 45 per cent and merchant banks at 16 per cent. The 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits was also maintained.
The rising volume of cash outside banks highlights a continuing shift in the composition of money holdings as Nigeria’s overall monetary aggregates expand.
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