Digital payment transactions in Nigeria have surged by 276 per cent in volume over the past five years, highlighting rapid adoption of electronic channels, even as cash continues to play a pivotal role in the economy, the Central Bank of Nigeria (CBN) has said.
The disclosure was made during the Committee on Bank Operations (CHBO) Annual Conference on Friday, where CBN Governor, Mr. Olayemi Cardoso, delivered the keynote address through his Special Adviser, Fatai Kareem. According to the data presented, the value of digital payments grew by 581 per cent over the same period, reflecting growing consumer confidence, technological innovation, and policy reforms in Nigeria’s financial sector.
Despite this impressive growth, the CBN noted that cash usage has not declined. Currency in circulation rose from about N2.4tn in 2020 to approximately N5.1tn in 2025, while ATM withdrawals alone reached N36.34tn in the first half of 2025, compared with N12.21tn in the same period in 2024.
Governor Cardoso emphasised the need for a balanced payment ecosystem, stating that “digital innovation and physical cash must coexist rather than compete.” He highlighted that electronic channels enhance efficiency, transparency, and inclusion, while cash remains indispensable, particularly in informal markets, rural communities, and among vulnerable populations.
The governor also underscored the role of banks in strengthening the payment ecosystem through investment in technology, fraud prevention, digital platforms, and improved cash deposit mobilisation. “Achieving this balance requires coherent policy, strong oversight, and close industry coordination. When aligned, the payment system supports economic activity, financial inclusion, and public trust,” he said.
Tolulope Ogundipe, First Vice Chairman of CHBO, echoed these sentiments, describing Nigeria’s financial system as being at a defining crossroads. “Digital payments are surging, reflecting consumer confidence and our collective ingenuity. Yet, cash remains deeply woven into the fabric of everyday life. For millions, especially in rural areas, cash is not just convenient; it is essential,” he said.
The Managing Director of Bankers Warehouse Plc added that a high volume of cash outside the banking system presents a challenge for monetary policy and financial planning. He warned that infrastructure gaps and trust issues must be addressed to ensure that cash circulates efficiently back into the banking system.
The CBN’s analysis shows that Nigeria’s financial future depends not on choosing between cash and digital, but on building a complementary system where both coexist, ensuring accessibility, reliability, and confidence for all citizens.
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