Cash held outside the banking system in Nigeria dropped slightly to N5.19 trillion in February 2026, according to new data from the Central Bank of Nigeria. This is a small decrease from N5.21 trillion in January and a more noticeable drop from the peak of N5.40 trillion recorded in December 2025.
At the same time, the total amount of money in circulation also reduced slightly, falling to N5.71 trillion in February from N5.73 trillion the previous month. This suggests a gradual slowdown in how much cash is moving around the economy.
Even with this recent decline, cash levels are still much higher compared to last year. In February 2025, cash outside banks was N4.51 trillion, showing that many Nigerians still prefer holding cash despite efforts to encourage digital payments.
Over the past year, cash usage increased steadily due to rising prices and a higher demand for everyday transactions. By mid-2025, the amount of cash outside banks had already passed N5 trillion, driven partly by people keeping extra money on hand and the growing cost of living.
The situation peaked in December 2025, when cash outside banks hit a record high. This was largely due to holiday spending, more money entering the system, and concerns about the reliability of electronic payment systems during busy periods.
However, recent figures show a change in direction. Cash outside banks has now declined for two months in a row, from January to February 2026, marking the first steady drop in a while.
A similar pattern is seen in overall cash circulation, which had been rising throughout 2025 but is now beginning to slow down slightly.
