Cash held outside Nigeria's banking system reached N4.92 trillion in September 2026, up N48.73 billion from N4.87 trillion in August, the Central Bank of Nigeria said when it released its monetary data on Wednesday. The increase reflected a wider expansion in the country's broad money supply, which grew to N146.6 trillion in September from N139.09 trillion in August, a rise of N7.51 trillion, according to CBN figures.
The CBN data showed that narrow money, which consists of currency in circulation and highly liquid deposits, also expanded during the period, climbing from N43.11 trillion in August to N44.05 trillion in September. Over a longer timeframe, broad money expanded by 18.3 per cent from January to September, growing from N123.95 trillion at the start of the year to N146.6 trillion by the end of the third quarter.
The rise in money supply followed the CBN's decision in September to reduce its benchmark interest rate by 350 basis points to 23 per cent, down from 26.5 per cent. The central bank said this represented the largest cut to the benchmark rate since December 2006. The Monetary Policy Committee also maintained the Cash Reserve Requirement for commercial banks at 45 per cent and for merchant banks at 16 per cent, while keeping the 75 per cent reserve requirement on non-Treasury Single Account public-sector deposits in place.
For savers and borrowers in Nigeria, the expansion in money supply and lower interest rates mean more cash is circulating in the economy but returns on savings are diminishing, while those seeking credit may find it increasingly available at lower cost.