Data from the latest money and credit statistics of the Central Bank of Nigeria (CBN) has revealed that in November 2025, currency outside banks stood at N4.91 trillion compared to a total currency in circulation of N5.26 trillion.
This shows that about 93.35 per cent of all physical cash in the country was held outside the banking sector, with only a small fraction retained in the formal system.
The figure represents a rise from October 2025, when N4.65 trillion out of N5.06 trillion was held outside the banking system, giving a ratio of 91.87 per cent.
The data shows that the preference for cash outside banks has become a structural feature of Nigeria’s monetary landscape rather than a short-term reaction to policy changes.
The trend shows a renewed build-up of physical cash as the year closed, suggesting rising liquidity demand in the informal economy and persistent distrust or reluctance to keep money in banks.
Across 2025, the share of cash outside banks consistently remained above 89 per cent.
The year opened in January 2025 with N4.74 trillion held outside banks out of N5.24 trillion in circulation, representing about 90.49 per cent.
The ratio stayed high through Q1 as February recorded 89.62 per cent and March 91.91 per cent before rising further in Q2 and Q3. April posted 91.09 per cent, and May increased to 92.39 per cent, while June and July hovered at 89.74 per cent and 89.79 per cent, respectively, before rising again to above 92 per cent in August and September.
The CBN data also shows that total currency in circulation surged to N5.26 trillion in November 2025, the highest level of the year, indicating a steady rise from N5.01 trillion in May and N5.23 trillion in January, and a low of N4.92 trillion in August and September.
The upward trend suggests increasing transactional demand for cash as the economy adjusted to price pressures and spending intensified toward year-end.
Year-on-year, currency in circulation grew from N4.88 trillion in November 2024, meaning about N383.7 billion more cash was circulating in November 2025.
Despite this rising supply, the proportion retained in banks did not meaningfully expand.
Bank reserves stood at N30.94 trillion in November 2025, only slightly below N31.58 trillion in October, but far above the N27.43 trillion recorded in January 2025.
The data shows a strong rise in reserves through the year, even hitting N34.67 trillion in September 2025, before stabilising back near N31 trillion.
Year-on-year, bank reserves rose from N25.99 trillion in November 2024 to N30.94 trillion in November 2025, an increase of almost N5 trillion in twelve months, indicating tightening liquidity conditions and rising sterilisation, possibly reflecting higher cash reserve requirements and liquidity management actions by the central bank.
In spite this, banks still captured only a fraction of total physical cash. Currency inside banks remained in the narrow range of 6–10 per cent of currency in circulation.
While bank reserves grew by nearly N5 trillion year-on-year, currency in circulation grew by less than N400 billion.
