Cash Outside Banks Falls ₦198bn in January
Cash held outside Nigeria’s banking system fell by ₦197.68bn in January 2026, dropping to ₦5.21tn, according to the Central Bank of Nigeria’s Money and Credit Statistics.
The decline came as total currency in circulation slipped marginally to ₦5.73tn, though the share of cash outside banks remained high at 90.91%, slightly lower than 94.33% in December 2025.
Year-on-year, cash outside banks was still higher, rising from ₦4.74tn in January 2025 to ₦5.21tn in January 2026, while overall currency in circulation expanded by ₦495.68bn.
Broad money supply (M3) fell by ₦1.05tn to ₦123.36tn in January, driven largely by a decline in net foreign assets, which dropped to ₦29.61tn from ₦31.51tn in December.
The naira strengthened during the month, closing at ₦1,391/$ compared with ₦1,431/$ at the start of January, contributing to the lower naira value of foreign assets.
Meanwhile, net domestic assets rose to ₦93.76tn, up ₦850.76bn month-on-month, reflecting stronger domestic credit and liquidity conditions. Narrow money also increased to ₦42.33tn, showing a year-on-year rise of ₦5.57tn.
Against this backdrop, the Monetary Policy Committee (MPC) cut the benchmark interest rate by 50 basis points to 26.5%, citing easing inflation and improved FX stability. Governor Olayemi Cardoso said food inflation fell to 8.89%, the lowest in 13 years.
Cardoso reaffirmed the MPC’s commitment to evidence-based policy, noting that “the ongoing disinflation trajectory would continue, largely supported by sustained exchange rate stability and enhanced food supply.”
When Professor Olayemi Cardoso assumed office as Governor of the Central Bank of Nigeria (CBN) in 2023, the Monetary Policy Committee (MPC) was stepping into one of the most turbulent periods.
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