By Boluwatife Oshadiya| July 29, 2026
Key Points
- CBN aims to reduce cash outside the banking system to below 40% of currency in circulation by 2028
- The target could return about ₦2.83tn into the formal financial system based on current figures
- The apex bank also plans to onboard 50 million additional Nigerians into formal financial services
Main Story
The Central Bank of Nigeria (CBN) has unveiled an ambitious strategy to bring approximately ₦2.83tn currently held outside the banking system into formal financial channels while expanding financial inclusion to 95 per cent by 2028.
The initiative forms part of the Nigeria Payments System Vision 2028 (PSV 2028), launched in Abuja by CBN Governor, Olayemi Cardoso, as the apex bank seeks to deepen digital payments, reduce dependence on cash transactions, and strengthen confidence in Nigeria’s financial system.
According to the latest CBN money and credit statistics, currency outside banks stood at ₦5.08tn in April 2026, representing more than 90 per cent of the ₦5.65tn in total currency circulating within the economy.
Cardoso said the bank intends to reduce that figure to less than 40 per cent by 2028. Based on current data, achieving that goal would return roughly ₦2.83tn into the banking system, improving liquidity, monetary policy effectiveness, and access to credit across the economy.
“Today, we unveil more than a payment strategy. We unveil a vision for how Nigerians will transact, trade, save, invest, and participate in an increasingly digital economy,” said Cardoso.
The governor also disclosed plans to increase financial inclusion to 95 per cent within three years, a move expected to bring an estimated 50 million additional Nigerians—particularly market women, farmers, and young people—into the formal banking and digital payments ecosystem.
The launch comes ahead of Nigeria’s 2027 general elections, a period that has historically generated concerns about increased cash circulation, vote-buying, and election-related spending pressures.
The Issues
The announcement highlights a longstanding challenge within Nigeria’s financial system. Despite years of financial inclusion initiatives, a significant portion of cash remains outside formal banking channels, limiting the effectiveness of monetary policy and reducing the banking sector’s capacity to support economic growth.
The development also comes as members of the CBN’s Monetary Policy Committee have warned that increased political spending ahead of the 2027 elections could complicate inflation management efforts and reverse recent disinflation gains.
What’s Being Said
“Cash should no longer be king. We need to build trust and ensure that people have no doubt that they are dealing with a strong and reliable payments system,” said Cardoso.
“Efficient payment infrastructure lowers transaction costs, improves business productivity, and enables firms of all sizes to participate competitively in the digital economy,” said Dr. Muhammad Abdullahi, Deputy Governor, Economic Policy Directorate.
What’s Next
- The CBN will begin implementing the five pillars of PSV 2028, including digital inclusion, payment infrastructure, cybersecurity, innovation, and cross-border payments
- Financial institutions, fintech firms, and telecom operators are expected to align operations with the framework over the next three years
- Progress toward the 95 per cent financial inclusion target will be monitored through periodic assessments leading up to 2028
Bottom Line
The Bottom Line: The CBN’s latest payments strategy signals a renewed push to formalise Nigeria’s largely cash-driven economy. If successfully implemented, the initiative could strengthen financial inclusion, improve monetary policy effectiveness, and reduce the risks associated with large volumes of cash circulating outside the banking system, particularly ahead of the 2027 elections.
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