CBN urges balance between cash and digital payments to protect financial inclusion
The Central Bank of Nigeria (CBN) has called for a balanced approach between cash and digital payments to ensure rural communities, informal traders and small businesses are not excluded from the country’s financial system.
CBN Governor, Mr Olayemi Cardoso, made this known on Friday at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, where he stressed that cash remains vital despite the rapid growth of electronic transactions.
Speaking through his Special Adviser on Operational Risk Management, Mr Fatai Karim, at the conference themed “Reimagining the Future of Cash in a Digital-First Economy,” Cardoso said Nigeria must sustain access to cash while deepening digital adoption to maintain public confidence in the payment system.
“Cash remains king. It is critical that this is maintained,” he said, noting that digital payments, though important for economic growth, cannot fully replace cash, particularly in less urbanised areas.
According to him, Nigeria’s payment ecosystem has expanded significantly over the past decade due to policy reforms, technological advances and changing consumer behaviour. He disclosed that electronic payment transaction volumes grew by 276 per cent, while transaction values increased by 581 per cent over the past five years.
Despite this growth, Cardoso said cash continues to play a crucial role in everyday transactions, especially in informal markets, rural communities and among small businesses. He added that CBN data showed currency in circulation rose by 4.6 per cent in 2025, indicating sustained demand for physical cash alongside digital alternatives.
He explained that electronic channels such as ATMs, point-of-sale terminals, mobile wallets and contactless solutions complement cash by improving access and distribution. “Electronic and digital channels decentralise and stabilise cash distribution, reduce operational bottlenecks, and enhance client experience,” he said.
The CBN governor also revealed that the apex bank is reviewing a policy on the ratio of bank-issued cards to the number of ATMs in circulation, noting that clarity would be achieved within the next few months following stakeholder engagements.
Tracing the evolution of money from commodity forms to coins, paper, cards and digital currencies, Cardoso said the future of currency lies in the coexistence of both physical and digital forms. “The future of currency is not either digital or physical; it is both,” he said.
Also speaking at the conference, President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, said cash and digital payments must function as complementary pillars of the financial system. He noted that while electronic transactions exceeded 60 billion in 2025, cash remained essential for low-value transactions in informal and rural sectors.
Similarly, Chairman of the Committee of Heads of Bank Operations (CHBO), Mr Abraham Aziegbe, represented by his First Vice Chairman, Mr Tolulope Ogundipe, said cash remained indispensable in rural and underserved areas. He disclosed that ATM withdrawals reached N36.34 trillion in the first half of 2025, underscoring Nigerians’ continued reliance on cash.
He called for stronger integration of cash and digital channels, emphasising collaboration, innovation and effective oversight to strengthen Nigeria’s financial ecosystem.
