The Central Bank of Nigeria (CBN) has disclosed that currency outside the banking system surged to ₦4.29 trillion in October 2024, representing 94.3% of the total ₦4.55 trillion in circulation.
This marks a significant year-on-year increase of ₦1.59 trillion, highlighting the growing trend of cash held outside deposit banks.
The report underscores concerns about monetary control and financial inclusion, with most of the nation’s cash remaining outside the formal banking system.
Data from the CBN’s money and credit statistics shows that a substantial proportion of currency in circulation remains outside the banking system, with more than 90 percent consistently held outside formal financial institutions in 2024.
The data revealed that currency outside banks surged to N4.29 trillion in October 2024, accounting for 94.3 percent of the total currency in circulation of N4.55 trillion.
This represents a significant year-on-year growth of 59 percent, or N1.59 trillion, from N2.70trillion in October 2023, when 89.6 percent of the total currency was outside banks.
On a monthly basis, the amount held outside banks increased by 6.8 percent, or N270 billion, compared to the N4.02 trillion recorded in September 2024.