Cash Demand Strengthens as COB Rises to N4.65tn, CIC Hits N5.06tn

Nume Ekeghe

Currency outside banks (COB) rose for the second straight month to N4.65 trillion in October 2025, reflecting renewed cash demand across the economy.

The latest Central Bank of Nigeria (CBN) “Money and Credit Statistics” report showed that COB grew by 4.07 per cent, adding N181.71 billion from N4.47 trillion in September.

The month-on-month data further indicates that COB had increased slightly in September by N14.73 billion from N4.45 trillion in August, after declining by N43.44 billion between June and August. Earlier figures show COB at N4.49 trillion in June, N4.56 trillion in April, N4.63 trillion in May, N4.52 trillion in February, and N4.72 trillion in January, compared with N5.13 trillion in December 2024, N4.65 trillion in November 2024, and N4.29 trillion in October 2024.

Similarly, currency in circulation (CIC) rose to N5.06 trillion in October, a 2.12 per centincrease from N4.95 trillion in September, representing a month-on-month expansion of N107.95 billion. CIC had earlier risen in September by N29.57 billion from N4.92 trillion in August, after a decline of N78.16 billion between June and August.

Prior to this, CIC stood at N5.01 trillion in May, N5.01 trillion in April, N5.00 trillion in March, N5.04 trillion in February, and N5.23 trillion in January, compared with N5.44 trillion in December 2024, N4.88 trillion in November 2024, and N4.55 trillion in October 2024.

The simultaneous rise in COB and CIC in October underscores persistent reliance on cash transactions despite ongoing reforms aimed at tightening system liquidity and promoting digital payment channels.

The CBN data also showed that credit to the private sector rose by 2.60 per cent to N74.41 trillion in October, up from N72.53 trillion in September, translating to a monthly increase of N1.88 trillion. However, on a year-on-year basis, private-sector credit recorded a slight decline of 0.46 per cent, compared with N74.07 trillion in October 2024.

Net credit to the government also climbed by 2.61 per cent to N24.79 trillion in October, from N24.16 trillion in September, though it posted a sharp year-on-year drop of 37.07 per cent, down from N39.39 trillion in October 2024.