Cash Outside Banks Falls to ₦4.8tn in Nigeria as Cash Holdings Decline

The amount of currency held outside Nigeria’s banking system fell to about ₦4.8 trillion in July, the lowest level recorded in eight months.

The decline suggests that more money may be moving through the formal banking system rather than remaining as physical cash outside banks.

The development comes amid continuing efforts to encourage digital payments and strengthen Nigeria’s formal financial system.

For businesses, consumers and financial institutions, the movement of cash remains important because it affects liquidity, banking activity and payment patterns across the economy.

The latest figure was reported by financial analysts based on monetary data.

Business angle: The decline could be positive for financial inclusion if more Nigerians are using bank accounts and electronic payment channels.