In a financial environment where digital payments are growing rapidly, cash continues to hold a firm place in Nigeria’s economy and everyday transactions. This paradox of simultaneous growth in electronic payments and enduring cash demand was underscored by top banking leaders ahead of the 2026 Banking Operations Conference, organised by the Committee of Heads of Bank Operations (CHBO). Their remarks reflect a broader national conversation on how Nigeria’s payments ecosystem is evolving.
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Cash’s Enduring Role in the Nigerian Economy
Abraham Aziegbe, the General Manager and Group Head of Retail Operations at Access Bank Plc, spoke candidly about the state of payments in Nigeria during a recent interview ahead of the CHBO conference. As the chairman of the committee, he said cash remains central to economic activity even as digital channels expand. According to him, the growth of fintech, mobile banking and electronic transfers has not diminished the need for physical currency, especially among communities and businesses that depend on cash for daily transactions.
Aziegbe’s perspective mirrors real economic behaviour across the country. Data from the Central Bank of Nigeria (CBN) show that Nigerians withdrew an astonishing N36.34 trillion from ATMs between January and June 2025. This figure is nearly three times higher than the withdrawal amount for the same period in 2024, a clear sign that Nigerians are still actively using cash despite deliberate policy nudges towards digital finance.
From traders in outdoor markets to commuters on city buses, many Nigerians prefer cash for its immediacy and simplicity. In local markets especially, smaller denomination transactions are easiest when handled in physical currency, and electronic payments have not fully replaced the need for cash. A recent national financial inclusion report highlighted that most adults in Nigeria continue to rely on cash to receive and make payments, often out of habit, convenience and limited trust in digital platforms.
The Banking Sector’s Response to Cash Realities
Banking executives are keenly aware of this delicate balance between electronic innovation and cash dependence. The 2026 Banking Operations Conference aims to tackle these competing realities by focusing on how to make cash handling smarter, safer and more efficient. Discussions will include integrating cash services more seamlessly with digital systems, improving traceability, and reducing the costs and risks associated with cash operations in a country with a diverse economy.
Tolulope Ogundipe, the Chairman of the Conference Planning Committee, said the agenda is built around actionable outcomes that bring together banks, regulators, payment service providers and technology platforms. The goal is to create a more resilient system where cash and digital methods support each other rather than compete. By doing so, Nigeria’s financial services industry hopes to achieve a balanced payments landscape that serves both technologically connected users and those who remain anchored to cash-based transactions.
Bankers emphasise that improving interoperability between cash and digital channels will be crucial. For example, enhancing how point-of-sale terminals, mobile transfers and ATM networks work together can help ensure that customers have flexible payment options wherever they are. Although more Nigerians have access to mobile and internet banking than ever before, barriers such as network reliability, digital literacy and access to devices remain. These gaps keep cash relevant for many, particularly in rural areas and among older populations.
Digital Payments Grow but Do Not Displace Cash
Nigeria’s story is not unique. Around the world, economies with strong cash traditions often see digital payment adoption grow alongside continued use of physical currency. In Nigeria’s case, digital payment volumes have increased sharply as mobile money platforms, USSD services, and bank transfers become more widespread. Financial technology data show that electronic transaction values have surged, with reports suggesting that electronic payment processing in Nigeria hit record highs as the digital ecosystem expanded.
At the same time, broader digital adoption has not eradicated cash use. Projections from global payment trends indicate cash transactions in Nigeria could decline over the long term, potentially falling by about one-third by 2030 as digital use intensifies. However, this would still leave cash as a significant mode of payment, especially for lower-value and informal transactions where digital alternatives have yet to gain full traction.
Experts also note that socioeconomic factors influence payment preferences. For many Nigerians, cash remains the most practical option where electricity, internet access, and payment infrastructure are limited. Even when digital wallets and banking apps are available, concerns about transaction failures, service downtime and fees can make cash a more dependable choice for everyday needs.
Looking Ahead: Integrating Cash with Digital Innovation
As policy makers, technology providers and financial institutions chart the future of Nigeria’s payment landscape, there is a growing consensus that cash and digital channels must coexist. Cash handling can be improved through innovations such as enhanced ATM networks, better security features, improved logistics and digital tracking systems that make physical currency easier to manage and safer to use.
Furthermore, strengthening financial literacy and trust in digital systems can help ease the transition for portions of the population that are still hesitant about electronic payments. Supporting infrastructure improvements such as reliable internet coverage and affordable smartphones will also be key to broadening access to digital finance.
Nigeria’s story highlights a broader evolution in how societies handle money. Digital platforms are transforming the way people pay, save and manage finances. Yet, the continued prominence of cash shows that innovation cannot simply erase long-standing habits and economic realities overnight. Instead, thoughtful integration of cash into a progressively digital payments landscape can help ensure that no group is left behind in the financial system.
By positioning cash as a complementary part of the payments ecosystem, Nigeria aims to build a future where all citizens can benefit from financial inclusion, operational efficiency and economic participation, whether they transact in cash, code or both.
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