CBN Governor Olayemi Cardoso shared this perspective during the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos. Represented by his Special Adviser on Operational Risk Management, Mr. Fatai Karim, Cardoso spoke at the event themed “Reimagining the Future of Cash in a Digital-First Economy.”
He stated, “Cash remains king. It is critical that this is maintained.” While digital payments have grown significantly, he noted they cannot entirely replace cash, especially in less urbanized areas. Over the past decade, Nigeria’s payment system has expanded due to policy reforms, technology, and changing consumer habits. Electronic transactions surged by 276% in volume and 581% in value over five years. However, cash remains vital for informal markets, rural areas, and small businesses.
CBN data shows currency circulation rose by 4.6% in 2025, reflecting sustained demand for cash alongside digital options. Cardoso highlighted how electronic channels like ATMs, POS terminals, and mobile wallets improve cash access. He added that the CBN is reviewing policies on ATM-to-card ratios, with clarity expected in the coming months.
Cardoso stressed that cash availability depends on logistics, infrastructure, and coordination among banks. He traced money’s evolution from coins to digital currencies, stating, “The future of currency is not either digital or physical; it is both.” Nigeria’s payment system must balance cash access and digital adoption to ensure financial inclusion.
CIBN President Prof. Pius Olanrewaju echoed this, noting that while digital transactions surpassed 60 billion in 2025, cash remains crucial for rural and informal sectors. He praised the CBN for expanding agent banking and digital infrastructure.
CHBO Chairman Abraham Aziegbe, represented by First Vice Chairman Tolulope Ogundipe, called for a balanced approach. ATM withdrawals hit ₦36.34 trillion in early 2025, showing Nigerians’ reliance on cash. He urged stronger integration of cash and digital channels through collaboration and innovation.
