Currency Outside Banks Falls to N4.8trn in July

Currency held outside the Nigerian banking system declined to N4.8 trillion in July 2026, its lowest level since November 2025, as cash outside banks fell for the second consecutive month.

Data from the Central Bank of Nigeria (CBN) showed that currency outside banks declined by 2.4 per cent compared to N4.92 trillion recorded in June, extending the downward trend from the N5.19 trillion reported in May.

The decline also pushed currency outside banks further below the N5 trillion mark, reversing part of the increase recorded during the first half of the year.

CBN data showed that currency outside banks stood at N5.25 trillion in January 2026 before declining to N5.19 trillion in February. The figure further fell to N5.08 trillion in April before rising slightly to N5.19 trillion in May.

However, the amount of cash held outside the banking system resumed its decline in June, falling to N4.92 trillion, before dropping further to N4.8 trillion in July. On a year-to-date basis, currency outside banks has declined by 8.6 per cent compared to N5.25 trillion recorded in January.

The decline in currency outside banks coincided with a reduction in the total currency in circulation during the month. Currency in circulation dropped from N5.52 trillion in June to N5.38 trillion in July, representing a monthly decline of N140.6 billion, or 2.5 per cent.

The figures indicate that less cash was held outside the banking system in July, although currency outside banks continued to account for the vast majority of the total currency in circulation.