The Central Bank of Nigeria (CBN) says automated teller machines (ATMs) and point-of-sale (PoS) terminals play a critical role in stabilising cash distribution and reducing operational bottlenecks across the country.
According to NAN, Olayemi Cardoso spoke on Friday at the 2026 Committee of Heads of Bank Operations (CHBO) conference in Lagos.
He said Nigeria must strike a balance between cash and digital payments to ensure rural communities, informal traders and small businesses are not left behind.
Represented by Fatai Karim, his special adviser on operational risk management, the CBN governor said cash remains essential to economic inclusion despite the rapid growth of electronic transactions.
“Cash remains king. It is critical that this is maintained,” Cardoso said.
He noted that while digital payments are playing an increasing role in supporting economic growth, they cannot fully replace cash in everyday transactions, particularly in less urbanised areas.
According to the CBN governor, Nigeria’s payment ecosystem has expanded significantly over the past decade due to policy reforms, technological advances and changing consumer behaviour.
Cardoso said electronic payment transactions recorded strong growth over the past five years, with volumes rising by 276 percent and values increasing by 581 percent.
“Despite this momentum, cash remains a critical component of everyday transactions, particularly in informal markets, rural communities, and among small businesses,” he added.
Cardoso said CBN data showed that total currency in circulation rose by 4.6 percent in 2025, reflecting sustained demand for physical cash alongside digital alternatives.
He 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 CBN governor also said 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 said.
Cardoso added that cash availability goes beyond currency issuance and depends on logistics, infrastructure, incentives and coordination among financial institutions.
Tracing the evolution of money from commodities to coins, paper, cards and digital currencies, he said the future of money would be both physical and digital.
‘ELECTRONIC TRANSACTIONS EXCEEDED 60BN IN 2025’
Pius Olanrewaju, president of the Chartered Institute of Bankers of Nigeria (CIBN), said cash and digital payments must coexist as complementary pillars of the financial system.
Olanrewaju said although electronic transactions exceeded 60 billion in 2025, cash remained vital for low-value transactions in informal and rural sectors.
Similarly, Abraham Aziegbe, chairman of the CHBO, called for a balanced approach to cash and digital payments.
The chairman, represented by Tolulope Ogundipe, his first vice chairman, said ATM withdrawals reached N36.34 trillion in the first half of 2025, underscoring Nigerians’ continued reliance on cash.
Aziegbe called for stronger integration of cash and digital channels, stressing the need for collaboration, innovation and effective oversight to strengthen Nigeria’s financial ecosystem.
