Currency outside banks rises 119 % as bank reserves up 79 %

Data from the Central Bank of Nigeria's Money and Credit Statistics indicates that currency held outside the banking system increased by 119.3 percent between August 2023 and August 2026. By the end of this period, the total volume of currency outside the banking sector reached N4.874 trillion. Simultaneously, bank reserves experienced a growth of 79 percent over the same three-year timeframe.

This trend reflects a significant shift in liquidity distribution within the Nigerian financial system, as the amount of cash circulating outside formal banking channels more than doubled. The reported figures highlight the evolving relationship between currency circulation and bank reserve levels as monitored by the nation's central monetary authority.