Nume Ekeghe
Cash held outside banking system declined to 89.1 per cent of currency in circulation (CIC) in June 2026, falling below the 90 per cent mark for the first time in 11 months as more cash flowed back into the formal banking system, latest data from the Central Bank of Nigeria (CBN) has shown.
According to the CBN Money and Credit Statistics, currency outside banks fell by N271 billion to N4.922 trillion in June from N5.193 trillion in May. At the same time, total currency in circulation declined by N167 billion to N5.523 trillion, compared with N5.690 trillion a month earlier.
As a result, the share of cash held outside the banking system dropped to 89.1 per cent from 91.3 per cent in May, marking the lowest ratio since July 2025, when cash outside banks accounted for 89.8 per cent of currency in circulation.
The latest reading ends a 10-month stretch during which the ratio remained above 90 per cent, suggesting that a larger proportion of cash is once again being retained within the banking system. Conversely, a lower ratio generally reflects stronger banking system liquidity and increased use of formal financial channels. A review of the past year shows that the proportion of cash outside banks remained persistently elevated despite fluctuations in the volume of currency in circulation. The ratio stood at 89.8 per cent in July 2025 before rising to 90.4 per cent in August and 90.1 per cent in September. It increased further to 91.9 per cent in October and 93.3 per cent in November before reaching a one-year high of 94.3 per cent in December 2025, when seasonal cash demand traditionally surges.
The ratio subsequently moderated to 91.7 per cent in January 2026 and 90.9 per cent in February. It eased further to 90.0 per cent in April before rising to 91.3 per cent in May and then declining sharply to 89.1 per cent in June.
The trajectory of currency in circulation also reflected changing liquidity conditions over the period. Currency in circulation stood at N4.922 trillion in July and August 2025, rose marginally to N4.953 trillion in September and crossed the N5 trillion mark in October at N5.058 trillion. It increased further to N5.262 trillion in November and N5.733 trillion in December before easing slightly to N5.731 trillion in January 2026.
Thereafter, currency in circulation hovered between N5.5 trillion and N5.7 trillion, standing at N5.710 trillion in February, N5.646 trillion in April, N5.690 trillion in May and N5.523 trillion in June.
