In a world racing towards digital dominance, Nigeria dares to ask: can cash and technology coexist? The Central Bank of Nigeria (CBN) is making a bold statement, urging the nation to embrace a future where physical currency and digital payments aren't rivals, but partners. But here's where it gets controversial: in an era of skyrocketing electronic transactions, CBN Governor Olayemi Cardoso insists that cash remains king, especially for those often left behind by the digital revolution.
Speaking at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, Cardoso, represented by his Special Adviser on Operational Risk Management, Fatai Karim, emphasized the enduring importance of cash. The conference, themed “Reimagining the Future of Cash in a Digital-First Economy,” highlighted a crucial point: while digital payments are booming (transaction volumes up 276% and values soaring 581% in five years!), cash is still the lifeblood of informal markets, rural communities, and small businesses. Think about it: street vendors, local farmers, and micro-entrepreneurs often rely on cash for their daily transactions.
CBN data backs this up, showing a 4.6% rise in currency circulation in 2025, proving that Nigerians still value the tangibility and accessibility of physical money. And this is the part most people miss: digital channels like ATMs, mobile wallets, and contactless payments aren't replacing cash; they're enhancing its accessibility. They decentralize cash distribution, reduce bottlenecks, and improve the overall financial experience.
Cardoso revealed that the CBN is actively reviewing policies to ensure a balanced ecosystem, including the ratio of bank-issued cards to ATMs. He stressed that cash availability isn't just about printing bills; it's about logistics, infrastructure, and collaboration between financial institutions.
Tracing the evolution of money from barter systems to cryptocurrencies, Cardoso declared, “The future of currency is not either digital or physical; it is both.” This dual approach, he argues, is crucial for building a robust and inclusive financial system that fosters public trust and empowers all Nigerians.
Chartered Institute of Bankers of Nigeria (CIBN) President Pius Olanrewaju echoed this sentiment, emphasizing the complementary nature of cash and digital payments. Even with over 60 billion electronic transactions in 2025, cash remains vital for low-value transactions in informal and rural sectors, supporting livelihoods and financial inclusion. He praised the CBN's efforts in expanding agent banking and strengthening digital infrastructure, which are key to building trust and wider adoption of electronic payments.
CHBO Chairman Abraham Aziegbe, represented by Tolulope Ogundipe, further emphasized the indispensability of cash in rural and underserved areas. The staggering N36.34 trillion withdrawn from ATMs in the first half of 2025 underscores Nigerians' continued reliance on cash for economic resilience and trust. Aziegbe called for a stronger integration of cash and digital channels, emphasizing the need for collaboration, innovation, and effective oversight to strengthen Nigeria's financial ecosystem.
So, what do you think? Can Nigeria successfully navigate this delicate balance between cash and digital payments? Is a truly inclusive financial system possible without prioritizing one over the other? Let us know your thoughts in the comments below!
