The Central Bank of Nigeria (CBN) is advocating for a balanced approach to cash and digital payments, ensuring that rural communities, informal traders, and small businesses are not left behind in the digital age. This call for inclusivity was made by CBN Governor, Mr. Olayemi Cardoso, at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos. Despite the rapid growth in electronic transactions, cash remains essential for economic inclusion, according to Cardoso. He emphasized that while digital payments are crucial for economic growth, they cannot replace cash in everyday transactions, especially in less urbanized areas. Nigeria's payment ecosystem has significantly expanded over the past decade, driven by policy reforms, technological advancements, and changing consumer behavior. Electronic payments have seen strong growth, with transaction volumes rising by 276% and values increasing by 581% over the past five years. However, cash still plays a critical role in informal markets, rural communities, and among small businesses. CBN data reveals that total currency in circulation rose by 4.6% in 2025, indicating 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 also mentioned that the CBN is reviewing a policy on the ratio of bank-issued cards to the number of ATMs in circulation, aiming for clarity within the next few months. Cash availability, according to Cardoso, goes beyond currency issuance and depends on logistics, infrastructure, incentives, and coordination among financial institutions. He emphasized that the future of currency is not either digital or physical but a combination of both. The President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, echoed this sentiment, stating that cash and digital payments must coexist as complementary pillars of the financial system. Olanrewaju commended the CBN for expanding agent banking and strengthening digital infrastructure to promote trust, accessibility, and wider adoption of electronic payments nationwide. Similarly, the Chairman of the Committee of Heads of Bank Operations (CHBO), Mr. Abraham Aziegbe, called for a balanced approach to cash and digital payments. Aziegbe emphasized that cash remains indispensable in Nigeria, particularly in rural and underserved areas, despite the rapid growth of digital channels. He noted 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. This balanced approach is crucial to ensure that the financial system serves all segments of society, fostering economic inclusion and resilience.
