Nigerians Hold 104% More Cash Outside Banks in Three Years, Says CBN

Nigerians are holding significantly more cash outside of banks, with the amount rising by nearly 104% over three years. As of September 2026, this figure reached about N4.9 trillion, up from N2.4 trillion in September 2023. This trend shows a strong demand for cash, even as electronic payment options are becoming more available.

The Central Bank of Nigeria (CBN) released data indicating that cash outside banks grew by 10.3% from the previous year, increasing from N4.5 trillion in September 2025. This rise reflects ongoing challenges in encouraging people to use formal banking services and digital payment methods.

In detail, the amount of cash outside banks jumped by 66.2% from N2.4 trillion in September 2023 to N4 trillion in September 2024. It continued to grow, reaching N4.5 trillion in September 2025, before hitting the current level in 2026.

Despite the rise in mobile banking and electronic transfers, many Nigerians still prefer cash transactions. Analysts point out that this preference highlights the need for improved financial inclusion and access to banking services.

In addition to cash holdings, demand deposits—money that people can access anytime—also increased. These deposits rose by about 71% to N39.1 trillion in September 2026, up from N22.9 trillion in September 2023. This growth suggests that more money is being kept in bank accounts, which are used for payments and withdrawals.

Clifford Egbomeade, an economic expert, noted that the rise in both cash outside banks and demand deposits indicates a complex relationship between cash usage and banking. He emphasized that while both figures are growing, they represent different aspects of how money is managed in Nigeria.