Cash demand rises as currency outside banks hits N4.65trn
Nigeria’s demand for physical cash intensified in October as Currency Outside Banks (COB) rose for the second consecutive month to N4.65 trillion, signalling renewed pressure on cash circulation despite sustained monetary tightening by the Central Bank of Nigeria (CBN).
According to the latest Money and Credit Statistics from the apex bank, COB increased by 4.07 percent in October, adding N181.71 billion to the N4.47 trillion recorded in September. This follows a slight rise of N14.73 billion in September after the figure declined by N43.44 billion between June and August.
The CBN data showed that COB stood at N4.49 trillion in June, N4.63 trillion in May, N4.56 trillion in April, and N4.52 trillion in February. It opened the year at N4.72 trillion in January, down from N5.13 trillion in December 2024.
Currency in Circulation (CIC) also grew, reaching N5.06 trillion in October, a 2.12 percent rise from N4.95 trillion in September.
This marks a month-on-month increase of N107.95 billion after CIC gained N29.57 billion in September, following a combined decline of N78.16 billion between June and August. CIC has hovered around N5 trillion since the start of the year.
The CBN report further 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, a monthly increase of N1.88 trillion. However, year-on-year, the figure dipped by 0.46 per cent from N74.07 trillion in October 2024.
Government borrowing also increased, as net credit to the government climbed by 2.61 per cent to N24.79 trillion in October from N24.16 trillion in September.
Despite the monthly rise, the year-on-year figure reflected a steep 37.07 per cent decline from N39.39 trillion in October 2024.
