In a world racing towards digital dominance, Nigeria’s Central Bank dares to ask: Can cash and digital payments coexist? This bold stance, championed by CBN Governor Olayemi Cardoso, challenges the notion that a digital-first economy must leave traditional cash behind. But here’s where it gets controversial: while digital transactions are skyrocketing, Cardoso argues that cash remains the lifeblood of economic inclusion, especially for rural communities, informal traders, and small businesses. Is this a nostalgic cling to the past, or a visionary move to ensure no one is left behind?
Speaking at the 2026 Committee of Heads of Bank Operations (CHBO) Conference in Lagos, Cardoso, represented by his Special Adviser on Operational Risk Management, Mr. Fatai Karim, emphasized that cash is not just a relic but a necessity. The conference, themed “Reimagining the Future of Cash in a Digital-First Economy,” highlighted the delicate balance Nigeria must strike. While digital payments have seen explosive growth—transaction volumes up 276% and values soaring 581% over five years—cash still reigns supreme in everyday transactions, particularly in less urbanized areas. For instance, CBN data reveals that total currency in circulation rose by 4.6% in 2025, proving that physical cash remains in high demand alongside digital alternatives.
And this is the part most people miss: electronic channels like ATMs, point-of-sale terminals, mobile wallets, and contactless solutions aren’t replacing cash—they’re enhancing its accessibility. These tools decentralize cash distribution, reduce operational bottlenecks, and improve user experience. Yet, the CBN governor also acknowledged that cash availability isn’t just about printing more money; it’s about logistics, infrastructure, incentives, and coordination among financial institutions.
Cardoso traced the evolution of money—from commodities to coins, paper, cards, and now digital currencies—and concluded, “The future of currency is not either digital or physical; it is both.” This dual approach, he stressed, is crucial for building a robust and inclusive financial ecosystem. But here’s a thought-provoking question: In a world increasingly dominated by digital currencies, are we risking the exclusion of those who rely on cash?
The CBN isn’t just talking—it’s taking action. The bank is reviewing a policy on the ratio of bank-issued cards to ATMs, aiming for clarity within months. Meanwhile, Chartered Institute of Bankers of Nigeria (CIBN) President Prof. Pius Olanrewaju echoed Cardoso’s sentiments, stating that cash and digital payments must coexist as complementary pillars. 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.
CHBO Chairman Mr. Abraham Aziegbe, represented by Mr. Tolulope Ogundipe, reinforced this point, noting that ATM withdrawals hit N36.34 trillion in the first half of 2025. This underscores Nigerians’ continued reliance on cash for economic resilience and trust. Aziegbe called for stronger integration of cash and digital channels, emphasizing collaboration, innovation, and oversight to strengthen the financial ecosystem.
So, what do you think? Is Nigeria’s push for a balanced payment system a step forward, or a step back? Are we overestimating the reach of digital payments, or underestimating the adaptability of rural communities? Share your thoughts in the comments—let’s spark a conversation that could shape the future of finance in Nigeria and beyond.
