The Central Bank of Nigeria (CBN) has called for a balanced approach between cash and digital payments to ensure that rural communities, informal traders, and small businesses are not left behind.

CBN Governor Olayemi Cardoso made the remarks yesterday at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, emphasizing that cash remains essential despite the rapid growth of electronic transactions.

Cardoso, represented by his Special Adviser on Operational Risk Management, Mr Fatai Karim, spoke at the conference themed, “Reimagining the Future of Cash in a Digital-First Economy.”

“Cash remains king. It is critical that this is maintained,” he said, highlighting the ongoing importance of physical currency in everyday transactions, particularly in less urbanised areas.

While digital payments are increasingly supporting economic growth, Cardoso noted they cannot entirely replace cash. According to him, “Despite this momentum, cash remains a critical component of everyday transactions, particularly in informal markets, rural communities, and among small businesses.”

The CBN governor pointed out that Nigeria’s payment ecosystem has expanded significantly over the past decade, driven by policy reforms, technological innovation, and changing consumer behavior.

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He noted that electronic payments recorded strong growth, with transaction volumes rising by 276 per cent and values increasing by 581 per cent over the past five years.

CBN data, he added, showed that total currency in circulation rose by 4.6 per cent in 2025, reflecting sustained demand for cash alongside digital alternatives. Cardoso also highlighted the complementary role of electronic channels such as ATMs, point-of-sale terminals, mobile wallets, and contactless solutions in improving access to cash.

“Electronic and digital channels decentralise and stabilise cash distribution, reduce operational bottlenecks, and enhance client experience,” he said.

The governor disclosed that the apex bank is reviewing a policy on the ratio of bank-issued cards to the number of ATMs in circulation. “This year, certainly within the next few months, we hope to have clarity once engagements with stakeholders are concluded,” he added.

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Cardoso stressed that ensuring cash availability goes beyond currency issuance, depending on logistics, infrastructure, incentives, and coordination among financial institutions.

Tracing the evolution of money from commodity forms to coins, paper, cards, and digital currencies, he said, “The future of currency is not either digital or physical; it is both.”

He added that Nigeria’s payment system must protect public confidence, sustain cash access, and deepen digital adoption to build a robust and inclusive financial ecosystem.

Also speaking, the President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Pius Olanrewaju, stressed that cash and digital payments must coexist as complementary pillars of the financial system.

He noted that although electronic transactions exceeded 60 billion in 2025, cash remained vital for low-value transactions in informal and rural sectors, supporting livelihoods and financial inclusion.

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, represented by his First Vice Chairman, Mr Tolulope Ogundipe, called for a balanced approach to cash and digital payments.

“Cash remained indispensable in Nigeria, particularly in rural and underserved areas, despite the rapid growth of digital channels,” he said.

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 stressed the need for stronger integration of cash and digital channels, calling for collaboration, innovation, and effective oversight to strengthen Nigeria’s financial ecosystem.