Money Supply: Currency Outside Banks Remain Dominant, Now 93.34% of CIC

Nume Ekeghe

Currency outside the banking (COB) system remained dominant in Nigeria’s money supply profile accounting for 93.34 per cent of total currency in circulation (CIC) as at November 2025, money and credit statistics released by the Central Bank of Nigeria (CBN), has revealed.

The statistics showed that currency outside banks stood at N4.91 trillion in November 2025, compared with total currency in circulation of N5.26 trillion.

This left only about N350.52 billion, or 6.66 per cent, of currency held within deposit money banks during the period.

A year-long review of currency held outside the banking system showed that in November 2025, cash outside banks rose to N4.91 trillion, up from N4.65 trillion in October, reflecting a renewed accumulation of cash toward the end of the year.

Earlier in the year, currency outside banks experienced a gradual moderation. From N4.46 trillion in August 2025, cash holdings declined to N4.42 trillion in July, before rising slightly to N4.49 trillion in June and N4.63 trillion in May.

Into the first quarter of 2025, with currency outside banks stood at N4.57 trillion in April, N4.60 trillion in March, and N4.51 trillion in February. By January 2025, cash outside banks was N4.74 trillion.

At the end of 2024, currency outside banks surged from N4.65 trillion in November 2024 to N5.13 trillion in December 2024, reflecting the typical year-end liquidity pattern.

The spike was driven by festive spending, heightened informal sector transactions, and increased cash withdrawals by households and businesses.

A review of Nigeria’s currency in circulation shows a largely stable but seasonally influenced trajectory over the past year. In November 2025, total currency in circulation stood at N5.26 trillion, up from N5.06 trillion in October 2025, reflecting renewed liquidity in the system as economic activity picked up toward the end of the year.

Earlier in 2025, currency in circulation experienced gradual fluctuations. From N4.95 trillion in September to N4.92 trillion in August and July, the figures showed a modest moderation, while June 2025 recorded N4.92 trillion, May 2025 rose slightly to N5.01 trillion, suggesting minor seasonal or transactional adjustments in cash demand.

The first quarter of 2025 also displayed mixed movements as currency in circulation rose to N5.01 trillion in April, it held steady at N5 trillion in March and moved to N5.03 trillion in February, before increasing again to N5.04 trillion in January 2025, indicating a relatively stable base amid seasonal liquidity changes.

Looking back to the end of 2024, currency in circulation was significantly higher. From N5.24 trillion in November 2024, it surged to N5.44 trillion in December 2024, mirroring the traditional year-end build-up in cash for festive spending, informal sector transactions, and higher household withdrawals. By November 2024, total currency in circulation had been N4.88 trillion, reflecting normal pre-year-end levels.