The Central Bank of Nigeria has called for a balanced approach between cash and digital payments to ensure that rural communities, informal traders, and small businesses are not left behind in the country’s evolving financial ecosystem.
CBN Governor Olayemi Cardoso made the remarks on Friday at the 2026 Committee of Heads of Bank Operations Conference in Lagos, themed “Reimagining the Future of Cash in a Digital-First Economy.” Represented by his Special Adviser on Operational Risk Management, Fatai Karim, Cardoso emphasised that cash remains essential to economic inclusion despite the rapid growth of electronic transactions.
“Cash remains king. It is critical that this is maintained,” he said, highlighting that while digital payments increasingly support economic growth, they cannot fully replace cash in everyday transactions, particularly in less urbanised areas.
The governor noted that Nigeria’s payment ecosystem has expanded significantly over the past decade, driven by policy reforms, technological advances, and changing consumer behaviour. Electronic payments recorded a 276 per cent rise in transaction volumes and a 581 per cent increase in value over the past five years. Despite this growth, cash continues to play a crucial role in informal markets, rural communities, and among small businesses.
CBN data shows that total currency in circulation rose by 4.6 per cent in 2025, reflecting sustained demand for physical cash alongside digital alternatives. Cardoso also highlighted the complementary role of electronic channels such as ATMs, point-of-sale terminals, mobile wallets, and contactless solutions in improving cash access.
“Electronic and digital channels decentralise and stabilise cash distribution, reduce operational bottlenecks, and enhance client experience,” he said. The apex bank is also reviewing a policy on the ratio of bank-issued cards to ATMs, with updates expected in the coming months.
Tracing the evolution of money from commodity forms to coins, paper, cards, and digital currencies, Cardoso stressed that “the future of currency is not either digital or physical; it is both.” He called on Nigeria’s payment system to maintain public confidence, sustain cash availability, and deepen digital adoption to build a robust and inclusive financial ecosystem.
Supporting this view, the President of the Chartered Institute of Bankers of Nigeria, Prof. Pius Olanrewaju, said cash and digital payments must coexist as complementary pillars of the financial system. Despite electronic transactions exceeding 60 billion in 2025, cash remains vital for low-value transactions in informal and rural sectors, underpinning livelihoods and financial inclusion.
Similarly, the Chairman of the Committee of Heads of Bank Operations, Abraham Aziegbe, represented by his First Vice Chairman, Tolulope Ogundipe, highlighted that ATM withdrawals reached N36.34 trillion in the first half of 2025, demonstrating Nigerians’ continued reliance on cash. He urged stronger integration of cash and digital channels through collaboration, innovation, and effective oversight to strengthen the country’s financial ecosystem.
