Olamilekan Abayomi
The Central Bank of Nigeria (CBN) is advocating for a balanced approach between cash and digital payments to promote financial inclusion. According to CBN Governor Olayemi Cardoso, while electronic transactions have increased significantly, cash remains vital for low-value transactions in informal and rural sectors, supporting livelihoods and financial inclusion.
The CBN recognizes that cash is still king in Nigeria, particularly in rural areas and among small businesses. To address this, the bank is expanding agent banking and strengthening digital infrastructure to promote trust, accessibility, and wider adoption of electronic payments.
The CBN’s data shows that total currency in circulation rose by 4.6% in 2025, reflecting sustained demand for physical cash alongside digital alternatives. Electronic channels, such as ATMs, point-of-sale terminals, mobile wallets, and contactless solutions, are improving access to cash.
The bank is also reviewing a policy on the ratio of bank-issued cards to the number of ATMs in circulation, aiming to enhance ATM reliability, improve cash distribution, and restore confidence in Nigeria’s electronic payment system .
To ensure financial inclusion, the CBN is promoting a balanced approach between cash and digital payments, protecting public confidence, sustaining cash access, and deepening digital adoption .
The CBN’s efforts are part of its broader Payments System Vision 2025, which aims to modernize Nigeria’s payment infrastructure and support a thriving digital economy. The plan includes enhancing core payments infrastructure, exploring blockchain technology, and developing regulatory frameworks for stablecoins and Initial Coin Offerings (ICOs).
The CBN is also focusing on financial literacy and consumer protection, recognizing that these are critical to promoting financial inclusion. The bank is working with stakeholders to educate consumers about digital financial services and protect them from fraud.
The National Financial Inclusion Strategy, launched in 2012, aims to reduce the exclusion rate to 20% by 2020. The strategy includes targets for increasing access to payment services, savings, credit, insurance, and pensions .
The CBN’s initiatives are expected to drive financial inclusion, reduce poverty, and promote economic growth. The bank is committed to creating a robust and inclusive financial ecosystem that supports Nigeria’s economic development.
