E-payments, digital channels reduce cash in circulation to N4.92tn

The Central Bank of Nigeria (CBN) has revealed that cash in circulation outside the banking system dropped from N5. 41 trillion to N4.92 trillion within a six months period spanning December 2025 and June 2026

CBN, in a recent report titled ‘Money and Credit Statistics’, attributed the reduction to the rising use of e-payments or digital platforms by Nigerians to transact business.

The Money and Credit Statistics showed the volume of cash outside Nigeria’s banking system dipped to N4.92 trillion in June, the lowest level in seven months. The latest figure marks a significant retreat from the surging cash levels recorded last year-end.

Further analysis of the data showed total currency in circulation dropped from N5.73 trillion in December 2025 to N5.52 trillion in June 2026, a decline of N209.56 billion or 3.66 per cent.

Already, more than 10 million QR-code and tap-to-pay acceptance points are expected to be deployed across markets, transport hubs, rural communities, and commercial centres nationwide. QR codes are digital payment systems that rely on codes to complete transactions

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In terms of value, Nigeria’s digital payment ecosystem exceeded stakeholders’ expectations, hitting N1.07 quadrillion in one year. A quadrillion is a very large number that means 1,000,000,000,000,000 (one thousand trillion).

Driven by the technological architecture of the Nigeria Inter-Bank Settlement System (NIBSS), the nation is cementing its status as the premier digital finance hub on the African continent, drastically outpacing traditional banking methodologies.

The cash outside banks also indicates the mop-up of loose cash into the banking system and the apex bank’s push to drive digital payments and cut cash…