While Nigerias payment landscape touts a digital revolution, the countrys economy is telling a different story: a 300 surge in electronic transactions since 2020 has not dethroned cash, which remains the undisputed king for millions .
New data from Nigerias banking sector compiled by professional services firm, Proshare, reveals a paradox. Despite electronic payment volumes growing 276 over five years, a staggering 95 of the countrys NGN 5.73 T over USD 4 B in physical cash circulates entirely outside the banking system . This parallel growth of digital and cash economies points to deep-seated structural issues that no app can easily fix.
The future of currency is not either digital or physical it is both, said Central Bank of Nigeria CBN Governor Olayemi Cardoso at a recent banking conference, acknowledging the need for a balanced system. Cash remains king. It is critical that this is maintained .
