Cash outside banks drops N118.67bn to eight-month low
By Aboki Forex —
Currency outside banks fell by N118.67 billion to N4.8 trillion in July 2026, the lowest level since November 2025, according to Central Bank of Nigeria (CBN) data analysed by TheCable Index.
This is the second consecutive monthly decline. Cash outside banks decreased by 2.41 percent from N4.92 trillion in June to N4.8 trillion in July. The previous low was N4.91 trillion in November 2025.
Down N604bn since December
The July figure extends a broader slide. Currency outside banks has dropped by N604.47 billion, or 11.18 percent, since December 2025, when it stood at N5.41 trillion.
Monthly figures show N5.25 trillion in January and N5.19 trillion in February. It fell to N5.08 trillion in April, rose to N5.19 trillion in May, then declined again in June and July.
Despite the recent fall, cash outside banks in July 2026 is still above the N4.42 trillion recorded in July 2025. The difference is N382.34 billion, or 8.65 percent.
CBN data also shows total currency in circulation dropped by N140.61 billion, or 2.55 percent, to N5.38 trillion in July from N5.52 trillion in June. Cash outside banks accounted for 89.24 percent of total currency in circulation, up from 89.11 percent in June.
Money supply up, demand deposits down
The decline in cash outside banks happened as money supply rose and demand deposits fell in July.
Money supply increased by N5.52 trillion, or 4.14 percent, to N138.78 trillion from N133.25 trillion in June. Demand deposits, part of narrow money, declined by N906.03 billion, or 2.28 percent, to N38.87 trillion over the same period.
Bank reserves rose by N2.73 trillion, or 8.04 percent, to N36.73 trillion.
Credit to the government recorded the largest drop among credit components, falling by N6.11 trillion, or 15.27 percent, to N33.92 trillion from N40.03 trillion. Credit to the private sector moved up slightly, by N171.8 billion, or 0.21 percent, to N83.43 trillion.
For Nigerian businesses, the sustained drop in cash outside banks suggests more funds are moving through the banking system. That makes liquidity easier for the CBN to monitor, and could strengthen the impact of its monetary policy decisions on the naira.