In September 2026, cash held outside Nigeria's banking system increased by N48.7 billion, reaching a total of N4.92 trillion. This represents a month-on-month rise of approximately 1%, and a significant year-on-year increase of 10.3% from N4.47 trillion in September 2025, according to the Central Bank of Nigeria (CBN). Despite the uptick, the current figure remains below the N5 trillion mark observed in the early months of 2026, suggesting fluctuating trends in cash holdings.
This development is particularly relevant as the CBN is actively pursuing a strategy aimed at reducing the reliance on physical cash while promoting digital payment solutions. CBN Governor Olayemi Cardoso recently launched the Nigeria Payment System Vision 2028, which seeks to enhance financial inclusion and digital transactions across the country. The CBN's goal is to lower cash outside banks to below 40% of the total currency in circulation, a target that underscores the importance of transitioning to a more technology-driven financial ecosystem.
Looking ahead, market observers should monitor how these cash trends impact the adoption of digital payment systems in Nigeria. While the increase in cash outside banks may indicate a temporary retreat from digital solutions, it also raises questions about consumer confidence in electronic transactions. The CBN's ongoing efforts to improve digital infrastructure and broaden access to financial services will be crucial in determining whether these cash holdings can be effectively reduced in the coming years.