Cash held outside Nigeria’s banking system fell by N197.68bn in one month to N5.21tn in January 2026, even as the amount of money circulating in the economy remained broadly flat, and bank reserves dropped sharply, according to the latest Money and Credit Statistics released by the Central Bank of Nigeria.

The figures showed that currency outside banks declined from N5.41tn in December 2025 to N5.21tn in January 2026, representing a month-on-month drop of N197.68bn. This came as total currency in circulation slipped marginally by N1.74bn to N5.731tn in January 2026 from N5.732tn in the preceding month.

Despite the monthly decline in cash held outside the banking system, the data indicated that a very large share of Nigeria’s physical cash remained outside deposit money banks. The proportion of currency in circulation that was held outside banks stood at 90.91 per cent in January 2026.

This means that more than nine-tenths of cash in circulation was still outside the vaults of banks during the month under review, although the ratio was lower than the 94.33 per cent recorded in December 2025.

The latest reading suggests that while some cash returned to the banking system between December and January, the broader structure of cash usage in the economy remained heavily tilted towards cash retention outside formal banking channels.

A comparison with the same period last year showed that cash outside banks was still significantly higher on an annual basis. In January 2025, currency outside banks stood at N4.74tn, compared with N5.21tn in January 2026. This translates to a year-on-year increase of N473bn.

Similarly, currency in circulation rose by N495.68bn year-on-year from N5.24tn in January 2025 to N5.73tn in January 2026, indicating that the stock of physical cash in the economy expanded over the 12-month period.

The data also showed that the share of currency in circulation outside banks was 90.48 per cent in January 2025, slightly below the 90.91 per cent posted in January 2026. This suggests that although the ratio eased on a monthly basis from December, it remained marginally higher than the level recorded a year earlier.

The PUNCH also observed that Nigeria’s broad money supply declined by N1.05tn to N123.36tn in January 2026, largely driven by a drop in the country’s net foreign assets.

Data published on the Central Bank of Nigeria website showed that the broad money supply, commonly referred to as M3, fell from N124.41tn in December 2025 to N123.36tn in January 2026.

M3 represents the broadest measure of money circulating in an economy. It includes cash in circulation, bank deposits, and other highly liquid financial instruments held by households, businesses, and financial institutions.

The January decline represents a month-on-month contraction of N1.05tn in overall liquidity within the financial system. Despite the monthly drop, the data showed that money supply expanded significantly compared with the same period last year. Broad money stood at N111.11tn in January 2025, indicating a year-on-year increase of N12.26tn.

An analysis of the underlying components of money supply suggests that the contraction in January was largely triggered by a decline in Nigeria’s net foreign assets. According to the CBN data, net foreign assets fell to N29.61tn in January 2026 from N31.51tn recorded in December 2025, representing a month-on-month decline of N1.90tn.

Net foreign assets refer to the foreign holdings of the banking system, including the Central Bank and commercial banks, such as foreign reserves, foreign currency deposits, and other overseas financial assets, minus their external liabilities.

The year-on-year comparison also showed a decline. In January 2025, net foreign assets stood at N33.19tn, meaning the January 2026 level reflects a drop of N3.58tn. The reduction in foreign assets occurred during a period when the naira strengthened in the official foreign exchange market.

The naira ended January 2026 on a stronger footing in the official market, closing at N1,391 to the dollar, compared with its opening rate of N1,431 to the dollar at the start of the month.

Data from the Central Bank of Nigeria showed that the currency largely traded below the N1,425 to the dollar mark throughout January, reflecting relative stability in the foreign exchange market amid improved liquidity conditions.

When the naira appreciates against the dollar, the naira value of foreign assets held by the monetary authorities may decline when converted from foreign currency.

While foreign assets declined, the data showed that domestic liquidity conditions expanded. Net domestic assets increased to N93.76tn in January 2026 from N92.90tn recorded in December 2025, representing a month-on-month increase of N850.76bn.

Net domestic assets represent the financial claims within the domestic economy, including credit to the Federal Government, lending to the private sector, and other domestic financial assets held within the banking system.

On a year-on-year basis, domestic assets recorded a stronger increase, rising from N77.92tn in January 2025 to N93.76tn in January 2026, indicating a growth of N15.83tn over the period.

Further breakdown of the CBN data showed that the narrower measure of liquidity in the financial system, known as M2, also declined during the month. M2 stood at N123.35tn in January 2026, compared with N124.40tn recorded in December 2025, representing a month-on-month drop of N1.05tn.

M2 is a slightly narrower measure of money supply than M3. It typically includes currency in circulation, demand deposits, savings deposits, and time deposits held in banks, but excludes certain institutional or large financial instruments captured under M3.

Meanwhile, narrow money, which represents the most liquid form of money in the economy, increased during the period. Narrow money rose to N42.33tn in January 2026 from N42.14tn recorded in December 2025, reflecting a month-on-month increase of N190.76bn.

Narrow money generally consists of physical currency in circulation and demand deposits in banks that can be easily accessed for transactions. The figure also showed a strong annual increase compared with N36.77tn recorded in January 2025, representing a year-on-year rise of N5.57tn.

Overall, the January figures suggest that while domestic credit and transactional money expanded within the economy, the decline in the value of Nigeria’s foreign assets played a decisive role in pushing down the country’s broad money supply during the month.

The movement in monetary aggregates comes amid the Central Bank of Nigeria’s continued efforts to manage liquidity conditions in the financial system through tight monetary policy aimed at curbing inflation and stabilising the foreign exchange market.

With the decline in money supply and inflation rate, the Monetary Policy Committee (MPC) of the CBN reduced the benchmark interest rate to 26.5 per cent. This was the second time the MPC cut rates under the current leadership of the apex bank.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 304th meeting in Abuja. Cardoso said, “The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent.”

He added that the MPC also resolved to “retain the Standing Facilities Corridor around the MPR at +50/-450 basis points” and to “retain the Cash Reserve Requirement for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.”

This marks the second rate cut under the current leadership of the apex bank, following a similar 50-basis-point reduction in September 2025 and a hold at the November 2025 meeting.

Cardoso said the decision was based on “a balanced evaluation of risks to the outlook,” which indicates that “the ongoing disinflation trajectory would continue, largely supported by the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.”

He noted that headline inflation eased to 15.10 per cent in January 2026 from 15.15 per cent in December 2025, marking the eleventh consecutive month of year-on-year decline.

According to the governor, “Food inflation declined markedly to 8.89 per cent from 10.84 per cent,” while “core inflation declined to 17.72 per cent from 18.63 per cent.”

On a month-on-month basis, headline inflation fell to -2.88 per cent in January from 0.54 per cent in December, which the committee said signalled “a continued softening of price pressures.”

He reaffirmed the MPC’s commitment to “an evidence-based policy framework, firmly anchored on the Bank’s core mandate of ensuring price stability, while safeguarding the soundness and resilience of the financial system.”

Analysts backed the decision of the MPC to cut the rate by 50 basis points, as stakeholders affirmed that the rate cut to 26.5 per cent is mostly viewed as a credibility-building signal rather than the start of rapid easing.

Banks and telecommunications companies must deepen their collaboration and share intelligence to combat the growing threat of artificial intelligence-driven fraud, according to a new report from Pricewaterhouse Coopers.

The professional services firm noted that the rapid adoption of AI is reshaping the fraud landscape in the telecommunications sector, enabling criminals to automate scams, impersonate victims through deepfake technologies, and scale fraudulent schemes with unprecedented speed.

The 16-page report, titled ‘AI’s Dual Role in Telecom Fraud’, noted that while AI is helping fraudsters launch more sophisticated attacks, the same technology can also serve as a powerful defensive tool for telecom operators and financial institutions.

“AI has tremendous potential to drive positive change across sectors, but it also enables fraudsters to create and disseminate scams quickly and at scale,” PwC said, warning that the expanding digital ecosystem linking telecom networks and financial services is creating new vulnerabilitie

Fraud has long posed a significant challenge for telecom operators worldwide, resulting in financial losses, reputational damage, and regulatory scrutiny. Globally, telecom fraud was estimated at approximately $38.95 bn in 2023, highlighting the scale of the problem. In Nigeria, the sector has also faced rising risks.

According to the Nigerian Communications Commission, citizens lost approximately N12.5 bn to telecom-related financial crimes between 2019 and January 2023.

PwC said the growing integration between telecom networks and financial services, such as mobile money platforms and digital banking, is further complicating the fraud landscape.

“When fraud occurs across interconnected platforms, both telecommunications and financial services providers face regulatory scrutiny and erosion of customer trust,” the report said.

The firm added that telecom operators are increasingly becoming critical infrastructure for digital financial services, exposing them to greater risk as criminals target the ecosystem. Despite these risks, PwC said telecom companies have a unique advantage in the fight against fraud due to the vast amount of network and customer data they possess.

By deploying advanced AI systems, telcos can detect suspicious activity patterns, flag unusual call behaviour, and identify fraudulent transactions in real time. For example, AI-driven pattern recognition can analyse large datasets to detect irregular call durations, unusual call frequencies, or activity occurring at odd hours, indicators that may signal fraudulent activity. Machine learning models trained on historical fraud cases can also help identify subtle warning signs that traditional detection systems might miss.

PwC noted that some telecom operators are already deploying AI-powered spam detection tools capable of analysing hundreds of behavioural parameters to determine whether a message is fraudulent. Real-time data analysis, the firm added, can allow companies to block fraudulent activities before they cause major financial damage.

Beyond fraud detection, AI can also help organisations respond more effectively to incidents. Using natural language processing, generative AI systems can convert technical security data into simplified reports tailored for regulators, executives, and compliance officers.

However, PwC said technology alone will not be enough to curb the growing threat. The firm stressed that stronger collaboration between telecom operators, financial institutions, and regulators is essential to prevent fraud from spreading across digital platforms. Telecom companies, it said, possess sophisticated tools capable of monitoring call patterns and network behaviour, which could help banks detect suspicious activities such as SIM swap attempts.

At the same time, banks have developed advanced fraud detection algorithms that could enhance telecom operators’ ability to identify suspicious activity across their networks. “By sharing insights and real-time threat intelligence, both sectors can strengthen their individual and collective defences,” PwC said.

The firm cited international examples where such collaboration has improved fraud detection and response times, including initiatives in the United Kingdom, Singapore, Australia, and the Philippines. PwC also emphasised the importance of closer engagement with regulators such as the Central Bank of Nigeria and the Nigerian Communications Commission to ensure clear and responsive regulatory frameworks that support innovation while protecting consumers.

NOVA Bank Limited has announced the appointment of Jude Anele as its Managing Director and Chief Executive Officer following the approval of the Central Bank of Nigeria.

A statement from the bank on Sunday stated that the appointment comes at a significant stage in the bank’s development, shortly after its transition from a merchant bank to a commercial bank and the successful completion of its recapitalisation programme ahead of the March 31, 2026, regulatory deadline.

Anele brings more than 33 years of banking experience spanning West and Central Africa, with expertise covering retail and commercial banking, corporate banking, risk management, institutional transformation, and executive leadership. Throughout his career, he has overseen complex banking operations, strengthened governance frameworks, delivered sustainable revenue growth, and built high-performing teams.

According to the bank, the appointment underscores the Board’s strategic commitment to strengthening NOVA Bank’s commercial banking platform while accelerating growth across its Corporate, Commercial, and Retail segments, as well as key priority markets.

Speaking on his appointment, Anele said he was honoured to assume leadership of the bank at a defining stage in its growth journey.

“Nova Bank has built a strong institutional foundation defined by regulatory compliance, capital strength, disciplined governance, and a clear commercial mandate.

Our focus now is execution — deepening customer relationships, expanding responsibly across priority markets,

The Chairman of the bank, Phillips Oduoza, also expressed confidence in the new leadership.

“The Board is pleased to welcome Mr Jude Anele as Managing Director and Chief Executive Officer. His depth of experience, strategic clarity, and proven leadership record align strongly with NOVA Bank’s growth ambitions,” Oduoza said.

He added that with the bank’s recapitalisation completed ahead of the regulatory deadline, the institution is entering a new phase characterised by scale, stability, and structured expansion.

NOVA Bank also confirmed that it has met the recapitalisation requirements set by the Central Bank of Nigeria ahead of the regulatory deadline, reinforcing its capital adequacy and long-term financial stability. The capital raise, supported by both new and existing shareholders, has further strengthened the bank’s balance sheet and positioned it for disciplined growth.

In 2025, Global Credit Rating reaffirmed NOVA Commercial Bank’s national scale long- and short-term issuer ratings of BBB(NG) and A3(NG) respectively, while Agusto & Co. reaffirmed the bank’s “Bbb” rating with a stable outlook, reflecting its strong capital base, sound liquidity position, and resilient asset quality relative to its risk profile.

The bank currently operates in Lagos, Abuja, Owerri, and Port Harcourt, with plans to establish eight additional branches across key commercial hubs in 2026 as part of its expansion strategy.

The commissioning of the bank’s regional office in Owerri marked a major milestone in its South-East and South-South growth strategy. The event drew government officials, business leaders, and Nigerians in the diaspora and underscored NOVA Bank’s commitment to supporting enterprise development and economic growth.