CASH HELD OUTSIDE BANKS FALLS BY ₦486BN TO SEVEN-MONTH LOW

The amount of cash circulating outside Nigeria’s banking system declined by ₦486 billion, falling to its lowest level in seven months, according to the latest financial data.

The drop suggests that more cash is returning to the formal banking sector, reflecting increased use of banking channels and digital payment platforms. Analysts say the trend could improve liquidity within the financial system and strengthen the effectiveness of monetary policy.

Experts noted that lower cash circulation outside banks can enhance financial transparency, support electronic transactions, and make it easier for financial institutions to mobilise deposits for lending and investment.

The development also comes as the Central Bank of Nigeria continues efforts to promote a cashless economy and improve financial inclusion through digital payment systems.

Economists believe sustained growth in electronic payments and greater public confidence in the banking sector will further reduce reliance on cash transactions. They added that increased funds within the banking system could support credit expansion, improve financial stability, and contribute to broader economic growth.