The Central Bank of Nigeria has unveiled an ambitious plan to mop up about N2.83tn currently held outside the formal banking system, as part of broader reforms aimed at strengthening Nigeria’s payment ecosystem ahead of the 2027 general elections.
The initiative, announced on Monday in Abuja by the CBN Governor, Olayemi Cardoso, forms a key component of the Nigeria Payments System Vision 2028, a strategic roadmap designed to deepen financial inclusion, reduce cash dependence, and position Nigeria as a leading payments hub in Africa.
The move comes amid growing concerns over cash-driven political activities, including vote-buying, as the Independent National Electoral Commission has fixed January 16 and February 6, 2027, for presidential/National Assembly and governorship/state assembly elections, respectively.
Cardoso said the apex bank aims to reduce the proportion of cash outside the banking system to below 40 per cent of total currency in circulation by 2028. Current CBN data indicate that about N5.08tn—representing over 90 per cent of the N5.65tn in circulation as of April 2026—is held outside banks.
Based on these figures, achieving the target would see roughly N2.83tn returned to the formal financial system, a development expected to improve liquidity, strengthen monetary policy effectiveness, and boost lending to the real sector.
He stressed that the initiative goes beyond financial transactions, noting that an efficient payment system could significantly reduce poverty and accelerate economic growth.
“One of the fastest ways to lift a large number of people out of poverty is through an efficient payments system,” Cardoso said.
The CBN governor added that the vision would redefine how Nigerians transact, save, invest, and participate in the digital economy, declaring that “cash should no longer be king.”
He also acknowledged lingering trust issues in digital payment channels, recalling instances where traders rejected cashless options due to system failures, and assured that efforts were underway to build a more reliable and secure payments infrastructure.
50 million Nigerians targeted
In addition to reducing cash outside banks, the CBN plans to onboard 50 million Nigerians into the formal financial system by 2028, raising financial inclusion to 95 per cent.
Cardoso said the target would bring more market women, farmers, and youths into the banking ecosystem, giving them access to secure financial services tied to their identities through bank accounts and Bank Verification Numbers.
He described financial inclusion as a critical driver of economic transformation, noting that it would enhance productivity, support small businesses, and contribute to Gross Domestic Product growth.
The framework rests on five strategic pillars, including payment infrastructure and interoperability, digital financial inclusion, innovation and emerging technologies, cross-border payments, and regulation with cybersecurity.
The CBN Deputy Governor in charge of Economic Policy, Muhammad Abdullahi, said modern payment systems had evolved into essential economic infrastructure that supports trade, investment, and innovation.
He explained that the plan would leverage technologies such as artificial intelligence, blockchain, and open banking, while also improving cross-border transactions under regional frameworks like the African Continental Free Trade Area.
Key regulators and industry stakeholders at the launch endorsed the vision, describing collaboration as crucial to its success.
The Director-General of the Securities and Exchange Commission, Emomotimi Agama, emphasised the importance of seamless integration between payment and securities systems.
Similarly, the Executive Vice Chairman of the Nigerian Communications Commission, Aminu Maida, said improved broadband infrastructure would play a critical role in supporting digital payments and financial inclusion.
He noted that tackling fraud and cybersecurity threats would require coordinated action across sectors.
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