By RismadarVoice Reporters
January 4, 2026
Nigerians withdrew a net ₦264.48 billion from the banking system in November 2025, pushing the total value of cash held outside banks to ₦4.91 trillion, according to the latest Money and Credit Statistics released by the Central Bank of Nigeria (CBN).
The figure represents a sharp increase from ₦4.65 trillion in October, underscoring the sustained preference for physical cash, despite ongoing efforts to deepen electronic payment systems.
CBN data also showed that total currency in circulation rose to ₦5.26 trillion in November, up from ₦5.06 trillion in the previous month.
As a result, the share of currency circulating outside the banking system climbed to 93.34 per cent, from 91.87 per cent in October, further shrinking the proportion of cash retained within banks.
On a year-on-year basis, currency outside banks increased by ₦258.75 billion, from ₦4.65 trillion in November 2024, representing a growth of 5.56 per cent.
Total currency in circulation over the same period rose by ₦383.67 billion, or 7.87 per cent, from ₦4.88 trillion.
Although the absolute volume of cash outside banks has grown, the CBN data indicate a slight improvement in the share of currency held within the banking system compared with November 2024, when as much as 95.38 per cent of all cash was outside formal custody.
A review of 2025 trends shows that cash outside banks fluctuated during the year before peaking in November.
The year opened with ₦4.74 trillion outside banks in January, equivalent to 90.48 per cent of total currency in circulation.
The lowest point was recorded in July, when cash outside banks fell to ₦4.42 trillion, accounting for 89.82 per cent of circulating currency.
From August, the figures began to rise steadily, culminating in November’s peak of ₦4.91 trillion, the highest level recorded in the year.
Throughout 2025, the ratio of cash held outside banks remained above 89 per cent, highlighting the structural challenge of Nigeria’s cash-dependent economy, even as total currency issuance expanded.
The liquidity environment was mirrored in commercial bank reserves with the CBN, which declined to ₦30.94 trillion in November from ₦31.58 trillion in October, after peaking at ₦34.67 trillion in September.
Analysts note that high levels of cash outside the banking system weaken monetary policy transmission, constrain deposit mobilization, and encourage informal transactions that fall outside regulatory oversight. The trend also complicates inflation management, as excess cash holdings reduce the effectiveness of policy tightening.
The November surge came amid the CBN’s cautious recalibration of monetary policy. In September, the Monetary Policy Committee (MPC) cut the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent, the first reduction since 2020, following signs of easing inflationary pressures and improved foreign exchange conditions.
However, at its November meeting, the MPC retained the benchmark rate at 27 per cent while adjusting the policy corridor to discourage banks from warehousing liquidity at the apex bank.
CBN Governor Olayemi Cardoso said the committee agreed that the economy needed more time for earlier policy decisions to fully take effect, signalling a cautious balance between easing and inflation control.
