Cash usage in Nigeria remains remarkably strong despite ongoing efforts to promote a cashless economy, with the amount of money held outside the banking system climbing to N5.19 trillion in May 2026.
The News Chronicle reports that fresh data from the Central Bank of Nigeria revealed that more than 91 per cent of the nation’s currency in circulation is currently outside commercial banks, highlighting the continued dominance of physical cash in daily transactions.
The latest figure represents an increase of N109.34 billion from April and more than N559 billion compared to the same period last year. Total currency in circulation also rose to N5.69 trillion, reflecting sustained demand for cash across households, small businesses, transport operators and informal markets.
The trend comes even as regulators intensify efforts to expand electronic payments through mobile banking, fintech platforms, agent networks and digital transfer systems. Meanwhile, reserves held by commercial banks at the apex bank declined during the period, suggesting reduced liquidity within the banking sector.
CBN Governor Olayemi Cardoso recently reaffirmed the bank’s commitment to accelerating digital payment adoption under the Nigeria Payment System Vision 2028 initiative. However, the latest figures underscore the challenge ahead, as millions of Nigerians continue to rely heavily on cash for everyday commercial activities despite growing access to digital financial services.
