Currency in circulation in Nigeria rose by 81 per cent to N5.44 trillion in August 2026, from N3.01 trillion in August 2023, despite the growing adoption of electronic payment systems.
Data from the Central Bank of Nigeria’s (CBN) Money and Credit Statistics show that currency in circulation increased by 51.1 per cent to N4.55 trillion in August 2024.
The growth rate slowed to 11.2 per cent in August 2025, when the figure reached N5.057 trillion, and further declined to 7.5 per cent in August 2026, with currency in circulation rising to N5.436 trillion.
The figures indicate that although demand for physical cash continues to rise, the pace of growth has moderated significantly over the three-year period.
Meanwhile, banks’ reserves increased from N18.528 trillion in August 2023 to N36.067 trillion in August 2026, representing a rise of N17.539 trillion or 94.7 per cent.
The CBN classifies currency in circulation and banks’ reserves as components of reserve money, also known as base money.
Commenting on the development, Managing Director of High Cap Securities Limited, David Adonri, said cash held outside the banking system reduces the funds immediately available to commercial banks for lending and other financial activities.
However, he cautioned that the rising volume of physical cash should not automatically be interpreted as evidence of excessive liquidity or inflationary pressure, noting that higher prices, larger transaction values and expanding economic activities could also drive demand for cash.
