- CBN emphasises infrastructure
The Nigeria Inter-Bank Settlement System (NIBSS) has reiterated the crucial role of cash in the payment system, stressing that cash must co-exist with the e-payment services.
Speaking at the 2026 Committee of Heads of Bank Operations Conference (CHBO) Conference in Lagos, Executive Director, Business and Products, Nigeria Inter-Bank Settlement System (NIBSS), Ngover Nwankwo, said inclusion must keep pace with innovation as digital payments expand.
“Our focus is balancing innovation with inclusion, ensuring no Nigerian is left behind as digital payment adoption grows,” Nwankwo said.
She stressed that cash remains vital and cannot be eliminated, insisting both cash and digital payments must coexist within Nigeria’s economy.
“Cash and digital platforms must work together, protecting those who rely on cash while offering secure, efficient services to digital users,” she said.
Nwankwo commended banks for operational improvements, noting cash availability in December 2025 was largely seamless with minimal public complaints.
She also highlighted biometric authentication, allowing customers to request and verify cards using fingerprints without extensive documentation.
Also, the Central Bank of Nigeria (CBN) has disclosed plans to introduce a new regulatory policy that would require banks’ prior investments in cash withdrawal and ATM infrastructure to secure card issuance approvals.
The policy shift, currently under review before announcement was disclosed by CBN Governor, Mr. Yemi Cardoso, through his Special Adviser, Mr. Fatai Karim.
He said the move would sanitise debit card issuance and Automated Teller Machine operations across Nigerian banks, targeting persistent cash access challenges.
The apex bank said the initiative will align the number of cards issued by banks with deployed ATM infrastructure to curb congestion, downtime, and uneven cash availability nationwide.
The CBN noted that recurring ATM failures and cash shortages continue to undermine confidence in electronic payment channels despite the rapid expansion of digital transactions across the banking system.
The apex bank said banks will no longer be allowed to issue massive volumes of cards without corresponding investment in ATM and cash withdrawal infrastructure.
“Very soon, the Central Bank will be coming up with another policy to sanitise and improve the situation, particularly around how many cards banks issue relative to the number of ATMs they support.
“Certainly the next few months; once the engagement is concluded with other stakeholders, CBN will make an announcement. When cash access fails—whether due to prolonged ATM outages or uneven distribution—the credibility of the entire payment system is weakened,” the CBN stated.
Karim said the CBN is engaging industry stakeholders and expects the policy to take effect within months, possibly before the end of the second quarter.
Nigeria’s banks have aggressively issued debit cards over the years to support financial inclusion and digital payments, but ATM deployment has lagged behind.
Card issuance expanded faster than ATM networks and cash logistics investments.
Customers frequently experience long queues, empty machines, and failed transactions. Informal cash channels, such as POS operators, have filled gaps at higher costs.
These structural gaps have persisted despite regulatory efforts to modernise payments and improve cash circulation nationwide.
The proposed policy is expected to reshape banks’ card issuance strategies and accelerate investment in ATM infrastructure, uptime, and cash management.
Banks will face tighter scrutiny over card issuance volumes and ATM deployment. Customers are expected to benefit from improved ATM availability and reduced transaction friction.
Stronger infrastructure could reduce reliance on informal cash channels. The CBN said restoring credibility in cash access and electronic payments is critical to financial system stability and public trust.
The CBN says cash remains relevant despite digital growth, particularly in informal markets and rural communities.
Currency in circulation grew by 4.6 per cent in December 2025, compared with December 2024 figures, the CBN data showed.
Cash demand rises sharply when electronic channels fail. Reliable digital channels help reduce pressure on physical cash.
The apex bank insists its objective is not to eliminate cash but to strike a balance between cash and digital payments, ensuring Nigerians can always access cash while building confidence in electronic channels across the country during everyday transactions and emergencies nationwide.
