Currency in circulation in Nigeria rose by 80.6 per cent to N5.44 trillion in August 2026 from N3.01 trillion three years earlier, reflecting the continued use of physical cash despite the expansion of digital payment services.
Data from the Central Bank of Nigeria’s (CBN) Money and Credit Statistics showed that currency in circulation increased most sharply between August 2023 and August 2024, rising by N1.54 trillion, or 51.1 per cent, to N4.55 trillion.
The growth rate subsequently slowed. Cash in circulation rose by 11.2 per cent to N5.057 trillion in August 2025 before increasing by N379 billion, or 7.5 per cent, to N5.436 trillion in August 2026.
The figures indicate that although the stock of physical currency continues to expand, its annual growth has moderated considerably over the three-year period.
The increase coincided with a substantial rise in banks’ reserves, which grew from N18.528 trillion in August 2023 to N25.456 trillion in August 2024.
Banks’ reserves climbed further to N31.583 trillion in August 2025 and N36.067 trillion in August 2026. This represented an overall increase of N17.539 trillion, or approximately 94.7 per cent, over three years.
The CBN classifies currency in circulation and banks’ reserves among the components of reserve money, also known as base money.
Commenting on the implications, David Adonri, Managing Director of High Cap Securities Limited, said cash held outside commercial banks’ deposit base could reduce the funds immediately available for banks to channel into loans and other financial assets.
However, rising currency in circulation does not automatically indicate excessive liquidity or inflationary pressure. Demand for cash may also increase because of higher prices, larger transaction values and expanding economic activity.
The growth in physical currency is notable amid the expansion of mobile banking, fintech services, instant transfers and other electronic payment channels.
The figures suggest that digital payments have not displaced cash as a major part of Nigeria’s economy, even as the pace of growth in currency circulation has slowed.
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