At the Annual Conference of the Committee of Heads of Bank Operations (CHBO) on Thursday, January 23, 2026, held at the Chartered Institute of Bankers of Nigeria (CIBN), Adeola Hopewell, Victoria Island, Lagos, the Central Bank of Nigeria (CBN) highlighted the evolving dynamics of cash, electronic payments, and digital currencies in the country. The conference, themed “Re-Imagining the Future of Cash in a Digital-First Economy,” brought together policymakers, banking executives, and financial experts to explore strategies for Nigeria’s rapidly transforming payment ecosystem.
During his presentation, a key speaker highlighted the exponential growth of digital payments, noting that transaction volumes had surged by 580% while transaction values increased by 276%. Yet, despite this rapid adoption, cash continues to play a critical role. “Cash remains king and is essential for sectors of the economy that still depend heavily on physical currency,” the speaker emphasized.
CBN’s Policy Initiatives
Shortly after the CBN Governor’s paper was delivered, Mr. Fatai Karim, Special Adviser to the CBN Governor, discussed the bank’s new policy initiatives aimed at strengthening the payment landscape. While the details of the policy are still under review, it focuses on balancing the issuance of payment cards and the availability of ATMs across Nigeria, ensuring a structured, nationwide approach to digital payment adoption.
“The policy is undergoing engagement with key stakeholders, including banks, fintech companies, and regulatory agencies, and is expected to be finalized in the coming months,” Karim said. He stressed that the initiative seeks to promote financial inclusion, optimize the circulation of cash, and create a resilient payment ecosystem that accommodates both digital and physical money.
Karim also noted that Nigeria’s trends reflect a global pattern where digital payment adoption is growing rapidly, but cash usage remains robust. “A coexistence model is necessary,” he said. “Digital and electronic payments are essential for efficiency and innovation, but cash remains a reliable store of value and a lifeline for millions who rely on it daily.”
Challenges and Opportunities
The conference highlighted several structural and operational challenges. Cash circulation outside of the formal banking system, infrastructure gaps, and uneven access to digital platforms can undermine monetary policy effectiveness. Karim emphasized that collaborative efforts between banks, cash-in-transit companies, fintech operators, and regulators are critical to ensure cash flows back into the banking system while digital payment adoption accelerates.
Experts at the event agreed that a balanced approach is vital for Nigeria’s $1 trillion economic growth vision. Policies that encourage digital payments must be carefully aligned with strategies that sustain cash availability, particularly in rural and underserved areas where physical currency remains central to daily transactions.
Looking Ahead
As Nigeria continues to innovate its financial sector, the CBN’s consultative and structured approach signals a commitment to economic stability, financial inclusion, and technological advancement. By integrating cash, electronic, and digital payments in a complementary system, Nigeria aims to foster an inclusive, efficient, and resilient financial ecosystem capable of supporting the nation’s ambitious economic growth trajectory.
CBN highlights Nigeria’s growing digital payment ecosystem while affirming cash remains crucial. New policy initiatives aim to balance card issuance and ATM availability, ensuring financial inclusion and stability.
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