The Central Bank of Nigeria (CBN) has revealed that the total currency in circulation has reached a record N4.1 trillion, with a staggering 94% of this amount circulating outside the banking system. This leaves only 6% of the total currency within the vaults of banks.
The CBN’s latest report highlights a significant increase in the currency outside the banking system, which now stands at approximately N3.87 trillion. This trend underscores the public’s preference for holding cash, despite the central bank’s efforts to promote digital transactions and financial inclusion.
The CBN has reiterated its commitment to ensuring the stability of the Nigerian financial system and continues to encourage the public to embrace digital banking solutions. The bank is also implementing measures to enhance the availability of cash through automated teller machines (ATMs) and other banking channels.
Dr. Godwin Emefiele, Governor of the Central Bank of Nigeria, stated, “The significant amount of currency outside the banking system poses challenges for monetary policy implementation and financial stability. We urge Nigerians to take advantage of the various digital banking platforms available to them.”