COB Maintains Downward Slide to N5.19tn, CIC Eases to N5.71tn

Nume Ekeghe

Currency outside banks (COB) and currency in circulation (CIC) declined for the second consecutive month in February 2026, reinforcing early signs of a gradual return of liquidity into the formal financial system.

Latest data from the Central Bank of Nigeria (CBN) showed that COB moderated to N5.19 trillion in February 2026, down from N5.21 trillion in January and significantly below the N5.40 trillion recorded in December 2025, when cash levels peaked.

Similarly, CIC declined to N5.71 trillion in February, compared with N5.73 trillion in January, extending the easing trend after months of sustained expansion.

On a year-on-year basis, however, COB remains elevated relative to N4.51 trillion in February 2025, reflecting persistent structural demand for cash despite ongoing monetary tightening and policy efforts to deepen digital payments.

A broader look at the past 12 months underscores the persistence of high cash levels, even as recent data points to early moderation.

In February 2025, COB stood at N4.51 trillion, before rising steadily through the year amid inflationary pressures and increased cash demand. By mid-year, cash outside the banking system had crossed the N5 trillion threshold, reflecting both precautionary hoarding and transaction-driven demand in a high-cost environment.

The build-up intensified in the final quarter of 2025, with COB reaching an all-time high of N5.40 trillion in December, driven by seasonal spending, liquidity injections, and limited trust in electronic payment channels during peak transaction periods.

Since then, COB has edged lower declining to N5.21 trillion in January 2026 and further to N5.19 trillion in February marking the first sustained pullback in months.

A similar pattern is evident in CIC. From relatively lower levels in early 2025, total currency in circulation expanded consistently through the year, mirroring both monetary growth and structural cash dependence in the economy.