The Central Bank of Nigeria (CBN) has issued a call for a balanced approach to cash and digital payments, emphasizing the need to ensure that rural communities, informal traders, and small businesses are not left behind in the digital age. This statement was made by CBN Governor, Mr. Olayemi Cardoso, at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, where the theme was 'Reimagining the Future of Cash in a Digital-First Economy'.
Despite the rapid growth in electronic transactions, Cardoso emphasized that cash remains essential for economic inclusion. He noted that while digital payments play an increasingly important role in supporting economic growth, they cannot fully replace cash in everyday transactions, particularly in less urbanized areas. Nigeria's payment ecosystem has expanded significantly over the past decade, driven by policy reforms, technological advances, and changing consumer behavior.
According to Cardoso, electronic payments recorded strong growth, with transaction volumes rising by 276% and values increasing by 581% over the past five years. However, despite this momentum, cash remains a critical component of everyday transactions, particularly in informal markets, rural communities, and among small businesses. CBN data shows that total currency in circulation rose by 4.6% in 2025, reflecting sustained demand for physical cash alongside digital alternatives.
Cardoso highlighted the complementary role of electronic channels, such as ATMs, point-of-sale terminals, mobile wallets, and contactless solutions, in improving access to cash. He noted that electronic and digital channels decentralize and stabilize cash distribution, reduce operational bottlenecks, and enhance client experience. 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, with the aim of providing clarity within the next few months.
Cardoso stressed that cash availability goes beyond currency issuance and depends on logistics, infrastructure, incentives, and coordination among financial institutions. He traced the evolution of money from commodity forms to coins, paper, cards, and digital currencies, stating that 'The future of currency is not either digital or physical; it is both.' Nigeria's payment system must protect public confidence, sustain cash access, and deepen digital adoption to build a robust and inclusive financial ecosystem.
The President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, echoed this sentiment, noting that cash and digital payments must coexist as complementary pillars of the financial system. He emphasized that although 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 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, called for a balanced approach to cash and digital payments. He noted that cash remains indispensable in Nigeria, particularly in rural and underserved areas, despite the rapid growth of digital channels. Aziegbe pointed out 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.
