Nigeria’s currency outside the banking system closed 2025 at a record ₦5.4 trillion, highlighting a sharp rise in the amount of physical cash held by Nigerians.
The figures, released by the Central Bank of Nigeria (CBN), reflect liquidity conditions across the economy and point to a widening gap between policy intent and public behaviour.
The surge came alongside a broader expansion in money supply. Data reported by Nairametrics put total money supply at about ₦124.4 trillion, raising fresh questions about the effectiveness of Nigeria’s long-running cashless policy ambitions.
Currency in circulation also climbed to an all-time high of ₦5.7 trillion by December 2025, indicating that only a small fraction of cash remained within the banking system.
Analysts say the growing preference for cash—despite years of policies promoting digital payments—reflects lingering concerns around banking access, transaction charges, system reliability, and trust, especially among small businesses and informal sector operators.
As Nigeria pushes for deeper financial inclusion and digital adoption, the swelling volume of cash outside banks suggests the road to a truly cashless economy remains long and complex.
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