WATCH THE VIDEO HERE Currency outside banks hit a new high of N4.65 trillion in November 2024, representing 95.4% of the total currency in circulation, as Nigerians grappled with persistent cash scarcity despite efforts by the Central Bank of Nigeria (CBN) to ease the situation. Data from the CBN showed a significant increase in cash held outside the banking system, up by N364.38 billion or 8.5% from N4.29 trillion in October. Total currency in circulation also climbed to N4.88 trillion, reflecting a month-on-month rise of N328.91 billion or 7.2%. The new high underlines Nigeria’s continued reliance on cash for transactions, even as the CBN works to promote digital payments. On a year-on-year basis, the amount of currency outside banks rose by 51% compared to n3.08 trillion recorded in November 2023. The consistent rise throughout 2024, which began with n3.28 trillion in January, culminated in November as the festive season heightened demand for cash amid limited banking infrastructure and financial inclusion challenges. Despite the increase in currency in circulation, Nigerians have faced severe cash scarcity towards the end of 2024. Bank customers reported difficulties in accessing cash, with ATMs frequently empty and withdrawal limits imposed at many bank branches. This scarcity has exacerbated economic hardships, particularly during the festive season when demand for cash spikes. These include inadequate banking infrastructure, low trust in digital payment systems, and financial exclusion, particularly in rural areas.
Currency outside banks hits new high of N4.65 trillion as Nigerians battle cash scarcity
