Business
Nigeria’s Cash Demand Moderates: Currency Outside Banks Falls in January 2026
Nigeria’s currency outside banks fell by 3.66% to ₦5.21 trillion in January 2026, reflecting a post-festive moderation in cash demand, CBN reports
Currency outside the banking system and total currency in circulation in Nigeria recorded slight declines in January 2026, reflecting a moderation in cash demand after the typical surge associated with year-end spending.
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According to the latest money and credit statistics released by the Central Bank of Nigeria (CBN), currency outside banks fell by 3.66% to ₦5.21 trillion in January 2026, down from ₦5.41 trillion in December 2025.
Similarly, total currency in circulation marginally declined by 0.03% to ₦5.73 trillion, compared with ₦5.73 trillion in December, signaling broadly stable liquidity conditions in the economy.
The figures indicate that cash held outside the banking system continues to dominate Nigeria’s monetary landscape, highlighting the country’s continued reliance on physical cash for transactions, especially within the informal sector.
“The decline in January follows the seasonal pattern in which currency demand rises sharply during the festive period and eases at the start of a new year as households and businesses return excess cash to banks,” the CBN noted.
A review of currency trends over the past year shows fluctuations but generally elevated cash holdings outside the banking system.
For instance, currency outside banks rose sharply in December 2025 to ₦5.41 trillion from ₦4.91 trillion in November, reflecting year-end liquidity build-up driven by festive spending and increased retail transactions.
Throughout 2025, currency outside banks ranged between ₦4.42 trillion and ₦4.74 trillion, reflecting intermittent adjustments in cash demand amid evolving economic conditions.
The seasonal pattern observed mirrors trends at the end of 2024, when year-end spending pushed cash outside banks from ₦4.65 trillion in November to ₦5.13 trillion in December.
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Overall, the modest declines in January 2026 suggest a post-festive normalization in cash demand, while the dominance of cash outside banks underscores Nigeria’s continued dependence on physical currency for daily transactions.
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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