Cash outside banks rises to N4.92tn as money supply expands

Cash held outside Nigeria’s banking system rose to N4.92tn in September 2026, up by N48.73bn from N4.87tn in August, according to Central Bank of Nigeria monetary data released on Wednesday.

The increase came as Nigeria’s broad money supply rose by N7.51tn to N146.6tn in September from N139.09tn in August. Narrow money also increased from N43.11tn in August to N44.05tn in September.

What the CBN data shows

Currency held outside banks refers to physical cash held outside the banking system. Broad money includes cash, demand deposits, savings and time deposits, as well as foreign currency deposits.

The rise in cash outside banks formed part of a wider expansion in money supply. Broad money supply increased by 18.3 per cent from N123.95tn in January to N146.6tn in September.

Rate cut and reserve rules

The increase in money supply followed the CBN’s decision in September to cut its benchmark interest rate by 350 basis points to 23 per cent from 26.5 per cent. The reduction was the largest cut in the benchmark rate since December 2006.

The Monetary Policy Committee also retained the Cash Reserve Requirement for commercial banks at 45 per cent and merchant banks at 16 per cent. It maintained the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits.

What it means for the naira

The figures show cash outside banks is still rising alongside broad money. That matters for how much naira sits outside formal banking channels and how liquidity moves through the economy.