2027 polls: CBN targets N2.83tn cash in private hands

The Central Bank of Nigeria has unveiled an ambitious plan to bring about N2.83tn currently held outside the banking system into formal financial channels and expand financial inclusion by onboarding 50 million additional Nigerians by 2028.

The targets form part of the Nigeria Payments System Vision 2028 unveiled by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, on Monday in Abuja, as the apex bank seeks to deepen digital payments, strengthen trust in financial services, reduce cash dependence, and position Nigeria as a leading payments hub in Africa.

The target is coming a few months before Nigeria’s 2027 general elections, with the Independent National Electoral Commission scheduling the presidential and National Assembly polls for January 16, 2027, and governorship and state assembly elections for February 6, 2027, amid renewed concerns over cash-driven campaigns, vote-buying, and higher legal spending limits for candidates.

The launch brought together regulators, banks, fintech operators, telecommunications firms, development partners, and other stakeholders in the financial services ecosystem.

Cardoso said the initiative was not merely about technology or financial transactions but about creating economic opportunities, reducing poverty, and accelerating growth. According to him, efficient payment systems remain among the fastest ways to lift large numbers of people out of poverty.

“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system. It’s through an efficient payment system. So let us not look at it lightly,” Cardoso said.

The governor described the Payments System Vision 2028 as a strategic roadmap that would shape how Nigerians transact, save, invest, trade, and participate in the digital economy over the next three years.

“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,” he said.

The new vision comes at a time when cash remains heavily concentrated outside the banking system despite years of financial inclusion efforts. Latest figures from the CBN’s money and credit statistics show that currency outside banks stood at N5.08tn in April 2026, representing about 90.03 per cent of the N5.65tn currency in circulation during the period.

Cardoso disclosed that the apex bank intends to reduce cash outside the banking system to less than 40 per cent of money in circulation by 2028. “I would like to see a situation where we will reduce cash outside the banking system to less than 40 per cent of money in circulation,” he said.

Using the April 2026 figures as a benchmark, achieving that target would imply reducing cash outside banks from N5.08tn to about N2.26tn, potentially returning roughly N2.83tn to the formal banking system.

Such a shift could significantly improve monetary policy transmission, increase banking sector liquidity, enhance financial intermediation, and strengthen lenders’ ability to support economic activity.

The effort comes as Nigeria prepares for the 2027 elections, when concerns over cash-intensive campaign activities and vote-buying are expected to place renewed focus on the amount of currency held outside formal financial channels.

The Governor of the CBN and members of the Monetary Policy Committee earlier warned that rising political and election-related spending ahead of the 2027 general elections could undermine the country’s disinflation gains and trigger fresh inflationary pressures. The warnings were contained in the personal statements of MPC members released by the apex bank.

At the launch of the Nigeria Payments System Vision 2028, the governor linked the target to broader efforts to build confidence in digital payments and reduce reliance on cash transactions. “Cash should no longer be king,” he said.

He recalled being concerned after watching a programme in which traders refused to accept cash payments due to concerns about the reliability of payment channels. “We need to do a lot more work to build trust and to ensure that people have no doubt that they are dealing with a strong and reliable payments system,” Cardoso said.

Alongside the cash target, the CBN is seeking to expand participation in the formal financial system dramatically. Cardoso said financial inclusion under the vision would rise to 95 per cent by 2028, bringing an estimated 50 million additional Nigerians into the banking and digital payments ecosystem.

“Under Vision 2028, I would like to see this reaching 95 per cent inclusion. That means 50 million more market women, farmers, and young people will have a bank account or wallet in their name, with their name and BVN protecting them,” he said.

The target represents one of the most ambitious financial inclusion drives undertaken by the apex bank in recent years and reflects the government’s broader efforts to formalise economic activity and expand access to financial services.

According to Cardoso, financial inclusion is not an end in itself but a tool for economic transformation. “The journey is to impact the lives of the poor. That’s part of it and a major part of it. The journey is to lift people out of poverty, and the journey is to have an impact on GDP,” he stated.

The governor added that a modern payment system was indispensable to economic growth, innovation, financial inclusion, and national competitiveness. The CBN governor said the new framework was designed to strengthen infrastructure, deepen inclusion, encourage innovation, improve resilience, and increase integration with regional and global payment systems.

He noted that payment systems had evolved beyond simple money transfer channels and had become strategic economic infrastructure. “In a modern economy, payment infrastructure is not simply a financial utility. It is a strategic national asset,” Cardoso said.

He explained that efficient payment systems reduce the cost of doing business, improve productivity, support trade, strengthen transparency, and broaden economic participation.

The vision also aims to help Nigeria take advantage of opportunities presented by the African Continental Free Trade Area, expanding digital commerce and increasingly interconnected global markets. “This is not merely about technology or transactions. It is about opportunity,” he said.

According to him, entrepreneurs, traders, and small businesses across the country stand to benefit from faster settlement systems, broader market access, and increased participation in regional and global commerce.

“For the entrepreneur in Aba, the trader in Zaria, the fashion designer in Ilesha, or the small business owner in Kano, efficient and interoperable payment systems can mean access to new markets, faster settlement of transactions, and greater participation in regional and global commerce,” Cardoso added.