The Central Bank of Nigeria (CBN) has reiterated the need for a balanced and inclusive payments system that preserves the relevance of physical cash while accelerating the adoption of digital payment channels across the country.
The call was made at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, themed “Reimagining the Future of Cash in a Digital-First Economy.” The apex bank said Nigeria’s evolving payments landscape must ensure that no segment of the economy is excluded as digital transactions continue to expand.
Representing the CBN Governor, Olayemi Cardoso, the Governor’s Special Adviser on Operational Risk Management, Fatai Karim, said that although digital payments are growing rapidly, cash remains indispensable, particularly for rural communities, informal traders and small businesses.
He explained that cash continues to play a critical role in financial inclusion, noting that millions of Nigerians still depend on physical currency for daily transactions despite the rise of electronic platforms.
According to the CBN, Nigeria’s payment ecosystem has recorded significant growth over the past decade, driven by policy reforms, technological innovation and changing consumer behaviour. Electronic transaction volumes and values have increased sharply in recent years, reflecting growing confidence in digital payment channels.
However, the apex bank disclosed that demand for physical cash remains strong, with currency in circulation rising in 2025. The CBN noted that this trend underscores the continued relevance of cash alongside digital alternatives.
The bank said automated teller machines, point-of-sale terminals, mobile wallets and contactless payment solutions now play complementary roles in improving access to financial services and decentralising cash distribution across the country.
Cardoso stressed that sustaining cash availability goes beyond issuing currency and requires efficient logistics, strong infrastructure, proper incentives and close coordination among financial institutions.
He also revealed that the CBN is reviewing its policy on the ratio of bank-issued cards to the number of ATMs, with further clarity expected after stakeholder consultations in the coming months.
The CBN Governor affirmed that the future of Nigeria’s payment system will not be exclusively physical or purely digital, but a combination of both. He said protecting public confidence, ensuring continued access to cash and deepening digital adoption are essential to building a resilient and inclusive financial ecosystem.
In his remarks, the President of the Chartered Institute of Bankers of Nigeria, Prof. Pius Olanrewaju, said cash and digital payments must co-exist as mutually reinforcing pillars of the financial system.
He noted that while electronic transactions have reached unprecedented levels, cash remains vital for low-value transactions, particularly in informal and underserved communities.
Similarly, the leadership of the Committee of Heads of Bank Operations emphasised the enduring importance of cash, citing the high volume of ATM withdrawals recorded in 2025 as evidence of Nigerians’ continued reliance on physical currency.
The conference called for stronger integration of cash and digital channels through collaboration, innovation and effective regulation to strengthen Nigeria’s evolving payments ecosystem.
