COB Hits One-year High at N5.19tn, Now 91.3% of Currency in Circulation

Nume Ekeghe

Latest data from the Central Bank of Nigeria (CBN) has revealed that Currency Outside Banks (COB) rose to N5.19 trillion in May 2026, accounting for 91.3 per cent of the country’s N5.69 trillion Currency in Circulation (CIC). 

The amount of cash held outside banks increased by 12.1 per cent from N4.63 trillion in May 2025 and by 2.2 per cent from N5.08 trillion recorded in April 2026.

The figures also showed that only about N497 billion, representing 8.7 per cent of the total currency in circulation, remained within the banking system in May.

Currency in circulation also continued its upward trend, rising to N5.69 trillion in May from N5.65 trillion in April and N5.01 trillion in the corresponding month of 2025. The latest figure represented a 13.5 per cent year-on-year increase and a 0.8 per cent month-on-month rise.

The trajectory of currency outside banks over the past year reflects persistent demand for cash despite periodic fluctuations. From N4.63 trillion in May 2025, the figure declined to N4.49 trillion in June and N4.42 trillion in July before recovering to N4.45 trillion in August and N4.47 trillion in September. It continued its upward climb to N4.65 trillion in October and N4.91 trillion in November before surging to N5.41 trillion in December amid heightened festive and commercial activities.

Cash outside banks subsequently moderated to N5.25 trillion in January 2026, N5.19 trillion in February and N5.08 trillion in April before rebounding to N5.19 trillion in May, the highest level recorded during the 12-month period.

Currency in circulation followed a similar pattern, although with less volatility. It eased marginally from N5.01 trillion in May 2025 to N5.008 trillion in June before falling to N4.92 trillion in both July and August. The figure rose to N4.95 trillion in September and crossed the N5 trillion mark again in October at N5.06 trillion, increasing further to N5.26 trillion in November and peaking at N5.73 trillion in December. 

Currency in circulation remained broadly stable at N5.73 trillion in January, slipped slightly to N5.71 trillion in February and N5.65 trillion in April before edging higher to N5.69 trillion in May, extending the long-term upward trend.

Although Nigeria’s digital payments ecosystem has expanded significantly, with strong growth in instant transfers, mobile banking, agency banking and point-of-sale transactions, cash continues to dominate transactions across large segments of the economy, particularly within the informal sector, transportation, retail markets and rural communities.