The Central Bank of Nigeria has disclosed that between May 2024 and May 2025, Nigerians withdrew a total of ₦923.16 billion from the banking system, highlighting a growing trend toward keeping cash outside formal financial institutions.
Data from the CBN’s latest Money and Credit Statistics report shows that currency held outside banks rose to ₦4.63 trillion in May 2025, reflecting a 1.42% increase from ₦4.57 trillion recorded in April.
On a year-on-year basis, the figure represents a 25% jump from ₦3.71 trillion in May 2024, indicating a significant rise in cash withdrawals over the 12-month period.
The report also revealed that total currency in circulation—comprising both cash held by the public and within banks—reached ₦5.01 trillion in May 2025. This marks a 26.45% rise compared to ₦3.97 trillion in May 2024, although it recorded a marginal month-on-month decline of 0.0002%.
Despite the broader increase in cash circulation, the share of currency held outside the banking system fell slightly to 92.4% in May from 93.8% in April. While still high, the slight dip suggests a modest return to banking channels. In May 2024, the ratio stood at 93.5%.
The consistent growth in out-of-bank cash holdings points to ongoing concerns over economic stability, trust in the financial system, and a continued reliance on cash-based transactions, likely driven by inflation and evolving monetary policies.
The trend comes as the CBN retained its Monetary Policy Rate at 27.5% during its May 2025 Monetary Policy Committee meeting. In April, the apex bank had reported a temporary drop in currency held outside banks to ₦4.57 trillion from ₦4.60 trillion in March—marking the second such decline this year.
