CBN Promotes Inclusive Cash, Digital Payments System
The Central Bank of Nigeria (CBN) says Nigeria must strike a balance between cash and digital payments to ensure rural communities, informal traders and small businesses are not left behind.
CBN Governor, Mr Olayemi Cardoso, made this known on Friday at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos. He also said cash remained essential to economic inclusion in spite of the rapid growth in electronic transactions.
Cardoso, who was represented by his Special Adviser on Operational Risk Management, Mr Fatai Karim, spoke at the conference with ttheme, “Reimagining the Future of Cash in a Digital-First Economy”.
“Cash remains king. It is critical that this is maintained,” he said.
He noted that while digital payments play a growing role in supporting economic growth, they cannot fully replace cash in everyday transactions, particularly in less urbanised areas.
According to him, Nigeria’s payment ecosystem has expanded significantly over the past decade, driven by policy reforms, technological advances and changing consumer behaviour.
He said electronic payments recorded strong growth, with transaction volumes rising by 276 per cent and values increasing by 581 per cent over the past five years.
“Despite this momentum, cash remains a critical component of everyday transactions, particularly in informal markets, rural communities, and among small businesses,” he added.
Cardoso said CBN data showed that total currency in circulation rose by 4.6 per cent in 2025, reflecting sustained demand for physical cash alongside digital alternatives.
He highlighted the complementary role of electronic channels such as ATMs, point-of-sale terminals, mobile wallets and contactless solutions in improving access to cash.
“Electronic and digital channels decentralise and stabilise cash distribution, reduce operational bottlenecks, and enhance client experience,” he said.
The CBN governor also disclosed that the apex bank is reviewing a policy on the ratio of bank-issued cards to the number of ATMs in circulation.
“This year, certainly within the next few months, we hope to have clarity once engagements with stakeholders are concluded,” he added.
Cardoso stressed that cash availability goes beyond currency issuance, depending on logistics, infrastructure, incentives and coordination among financial institutions.
Tracing the evolution of money from commodity forms to coins, paper, cards and digital currencies, he said, “The future of currency is not either digital or physical; it is both.”
He stressed that Nigeria’s payment system must protect public confidence, sustain cash access and deepen digital adoption to build a robust and inclusive financial ecosystem.
Also speaking, the President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, said cash and digital payments must coexist as complementary pillars of the financial system.
He noted that although electronic transactions exceeded 60 billion in 2025, adding that cash remained vital for low-value transactions in informal and rural sectors, supporting livelihoods and financial inclusion.
Olanrewaju commended the CBN for expanding agent banking and strengthening digital infrastructure to promote trust, accessibility and wider adoption of electronic payments nationwide.
Similarly, Chairman of the Committee of Heads of Bank Operations (CHBO), Mr Abraham Aziegbe, represented by his First Vice Chairman, Mr Tolulope Ogundipe, called for a balanced approach to cash and digital payments.
Aziegbe said cash remained indispensable in Nigeria, particularly in rural and underserved areas, despite the rapid growth of digital channels.
He noted that ATM withdrawals reached N36.34 trillion in the first half of 2025, underscoring Nigerians’ continued reliance on cash for economic resilience and trust.
The CHBO chairman called for stronger integration of cash and digital channels, stressing the need for collaboration, innovation and effective oversight to strengthen Nigeria’s financial ecosystem.
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