Over 90% of Cash in Nigeria Held Outside Banks: CBN Data Shows High Dependence on Physical Currency

A new report by the Central Bank of Nigeria (CBN) reveals that over 90% of Nigeria’s total cash, amounting to ₦4.47 trillion, is held outside traditional banking institutions. This trend signifies a significant shift in financial habits as many Nigerians continue to prefer physical money for daily transactions. The CBN data also reveals a slight increase in cash holdings during September 2025 despite a decline in overall money supply. Despite efforts to encourage digital payments, market traders and individuals alike rely heavily on hard currency due to the limited reliability of electronic transfers and network connectivity issues.