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- The CBN has revealed that 93% of currency in circulation in the economy is outside the banking industry
- The apex bank revelation sheds light on the shift in financial habits by Nigerians and growing importance of PoS operators
- PoS operators are now handling a significant portion of daily transactions due to convenience and accessibility
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria has revealed that currency outside the banks surged to an all-time high of N3.28 trillion as of June 2024.
This represents 93% of the total N4.04 trillion currency in circulation, indicating that banks have just over N1 trillion available to attend to customers.
Source: Getty Images
The CBN disclosed the figures in its money statistics data published on its website and obtained by Legit.ng.
Currency outside bank full details
The CBN's data reveals a steady increase in currency outside the bank over the first six months of 2024.
At the start of the year, January saw the currency outside banks at N3.28 trillion.
This figure rose by N130 billion, or 3.98%, to N3.41 trillion in February.
Also, March experienced another increase, with the amount reaching N3.63 trillion, marking a rise of N217 billion or 6.34% from the previous month.
However, in April, there was a slight dip, with currency outside banks decreasing to N3.61 trillion, a drop of N80 billion or 0.62% from March.
A new increase was experienced in May, with the amount rising to N3.71 trillion, an increase of N105 billion or 2.93% from April.
June recorded the highest rise, with currency outside banks reaching N3.79 trillion, an increase of approximately N80 billion from May.
PoS operators now serves Nigerians
The rise in currency outside banks comes as Point of Sale (PoS) operators are increasingly relied upon by Nigerians for cash.
An operator, Jude Ike, explained to Legit.ng that they no longer go to banks for cash or use bank ATMs.
According to him, cash is obtained from filling stations and supermarkets.
"I can't remember the last time I went to the bank for cash. All I do is go to the filling stations around where I already have a relationship and pay for cash. I pay the extra charges and get my cash. Supermarkets also give us cash, including restaurants."Regarding charges, he explained that customers pay a service charge of N100 for withdrawals up to N5,000 and N200 for withdrawals up to N10,000.
He added:
"There is a N100 charge added after a withdrawal above N5,000, and this goes up to N100,000. It is the same for deposits."CBN releases new rules for banks
Legit.ng earlier reported that the CBN released a new guideline for financial institutions interested in converting or re-categorising their licenses.
Zenith, Access, First Bank, FCMB, Sterling, and GTB were among top financial institutions that have transitioned to holding companies in recent months.
There were reports that many fintech companies were pushing towards becoming full-fledged digital banks, offering microfinance services.
Source: Legit.ng
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