A bold statement for a bold issue: Nigeria's financial future demands an inclusive approach to cash and digital payments. The Central Bank of Nigeria (CBN) has recognized the importance of striking a balance, ensuring that rural communities, informal traders, and small businesses aren't left behind in the digital revolution.
CBN Governor, Mr. Olayemi Cardoso, emphasized this at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos. Despite the rapid growth of electronic transactions, cash remains essential for economic inclusion, especially in less urbanized areas.
"Cash remains king," Cardoso declared. "It is critical that we maintain this balance." He highlighted the significant expansion of Nigeria's payment ecosystem over the past decade, driven by policy reforms, technology, and changing consumer behavior.
Electronic payments have seen remarkable growth, with transaction volumes surging by 276% and values increasing by an impressive 581% in the last five years. However, cash continues to play a vital role in everyday transactions, particularly in informal markets, rural areas, and among small businesses.
CBN data reveals that total currency in circulation rose by 4.6% in 2025, indicating a sustained demand for physical cash alongside digital alternatives. Electronic channels, such as ATMs, point-of-sale terminals, mobile wallets, and contactless solutions, complement cash access and improve distribution.
"Electronic and digital channels decentralize and stabilize cash distribution, reducing operational bottlenecks and enhancing the client experience," Cardoso explained.
The CBN governor also revealed that the apex bank is reviewing a policy on the ratio of bank-issued cards to ATMs. He stressed that cash availability is not just about currency issuance but also logistics, infrastructure, incentives, and coordination among financial institutions.
Tracing the evolution of money, from commodity forms to coins, paper, cards, and digital currencies, Cardoso emphasized, "The future of currency is not an either-or scenario; it's a harmonious blend of digital and physical." Nigeria's payment system must protect public confidence, sustain cash access, and deepen digital adoption to create a robust and inclusive financial ecosystem.
Prof. Pius Olanrewaju, President of the Chartered Institute of Bankers of Nigeria (CIBN), echoed the need for cash and digital payments to coexist as complementary pillars. He noted that while electronic transactions exceeded 60 billion in 2025, cash remains vital for low-value transactions in informal and rural sectors, supporting livelihoods and financial inclusion.
Olanrewaju praised the CBN for its efforts in expanding agent banking and strengthening digital infrastructure to promote trust and accessibility in electronic payments nationwide. Similarly, Mr. Abraham Aziegbe, Chairman of the CHBO, called for a balanced approach, emphasizing that cash remains indispensable in Nigeria, especially in rural and underserved areas, despite the growth of digital channels.
ATM withdrawals reaching N36.34 trillion in the first half of 2025 underscores Nigerians' continued reliance on cash for economic resilience and trust. The CHBO chairman advocated for stronger integration of cash and digital channels, stressing the need for collaboration, innovation, and effective oversight to strengthen Nigeria's financial ecosystem.
This is a crucial conversation, and we want to hear your thoughts. Do you agree with the CBN's approach? What role do you see for cash and digital payments in Nigeria's future? Share your insights and let's spark a discussion!
