**Naira Outside Banks Declines by 3.66%, Total Currency Circulation Falls by 0.03% in January 2026** The Central Bank of Nigeria (CBN) has released the latest money and credit statistics, showing a marginal decline in the amount of naira outside the banking system and total currency in circulation in January 2026. This development reflects a moderation in cash demand following the usual surge in year-end spending. According to the data, naira outside banks fell to N5.21 trillion in January 2026, a 3.66% decrease from the N5.41 trillion recorded in December 2025. Similarly, total currency in circulation declined by a mere 0.03% to N5.73 trillion in January 2026, compared to the same figure in December 2025. This stability in overall liquidity conditions suggests that the post-festive adjustment period has not significantly impacted the economy. The statistics reveal that naira held outside the banking system remains the dominant force in Nigeria's monetary landscape. This is reflective of our country's reliance on physical cash, particularly in the informal sector. The decline in January follows the typical seasonal pattern, with currency demand increasing sharply during the festive period and easing at the start of a new year as consumer spending slows. Analyzing the trend over the past year, it is clear that naira outside banks has exhibited a fluctuating yet generally elevated trend. The December 2025 spike to N5.41 trillion was a result of year-end liquidity build-up driven by festive spending, increased retail transactions, and higher cash withdrawals by households and businesses. Prior to this spike, cash outside banks gradually accumulated toward the close of the year, from N4.65 trillion in October to N4.91 trillion in November 2025. The mixed trajectory of naira outside banks in the second half of 2025, with fluctuations between N4.46 trillion in August and N4.42 trillion in July, suggests a complex interplay of factors influencing cash demand. However, the overall trend indicates a sustained reliance on physical cash in Nigeria's economy.