The data revealed that currency outside banks surged to N4.29trillion in October 2024, accounting for 94.3 per cent of the total currency in circulation of N4.55trillion.
The Central Bank of Nigeria has revealed that more than 94 per cent of the cash in circulation in the country is outside the control of deposit banks, marking a significant year-on-year increase of N1.59 trillion in the amount of currency held outside banks.
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 per cent consistently held outside formal financial institutions in 2024.
The data revealed that currency outside banks surged to N4.29trillion in October 2024, accounting for 94.3 per cent of the total currency in circulation of N4.55trillion.
This represents a significant year-on-year growth of 59 per cent or N1.59trillion from N2.70trillion in October 2023, when 89.6 per cent of the total currency was outside banks.
On a month-on-month basis, the amount held outside banks increased by 6.8 per cent or N270billion, compared to the N4.02trillion recorded in September 2024.
In September 2024, currency outside banks stood at N4.trillion, representing 93.1 per cent of the total currency in circulation of N4.31trillion.
PUNCH reports that this marked a year-on-year increase of 66.3 per cent compared to N2.42trillion in September 2023, when 87.5 per cent of the total was outside banks. The month-on-month increase was 3.8 per cent.
In August 2024, currency outside banks rose to N3.87trillion, which accounted for 93.3 per cent of the total currency in circulation of N4.14trillion.
This represented a year-on-year increase of 73.9 per cent compared to N2.22tn in August 2023, when 83.6 per cent of the total currency was outside banks.
The trend continued in July 2024 with N3.67trillion held outside banks, representing 90.5 per cent of the total currency in circulation of N4.05trillion.
Despite efforts to promote cashless transactions, the data shows that Nigerians remain deeply reliant on cash, which could hinder the country’s push for modernised financial systems.
The President, Association of Senior Staff of Banks, Insurance, and Financial Institutions, Olusoji Oluwole, attributed the worsening cash shortage across the country to the CBN’s inability to meet the cash demands of commercial banks.’