In Nigeria, cash refuses to disappear despite the rapid growth of digital payments in 2025.
More than 94% of money remains outside banks, showing people’s surprising reliance on physical cash.
Cash Refuses To Disappear
Meanwhile, electronic payments have grown over 300% since 2020, yet cash still dominates daily transactions.
At a conference in Lagos on January 23, the CHBOs revealed these figures.
Consequently, people continue to use cash for markets, shops, and everyday withdrawals, despite digital alternatives.
Mrs Abidemi Asunmo noted that Nigeria’s digital transactions rise alongside, rather than replace, cash usage.
She explained that cultural habits and convenience make people keep using cash, even with mobile banking.
Branches Evolve, Trust Remains
Moreover, branches remain essential, serving as trusted spaces for consultation and reassurance, not just transactions.
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Mrs Adebambo Famuyiwa highlighted that queues persist because banks still rely heavily on cash.
Also, network downtime and infrastructure gaps often push customers back to physical bank visits.
Dr Stanley Jacobson described branches as “reborn,” balancing digital guidance with human trust.
Meanwhile, Mr Daniel Awele urged banks to transform branches into digital hubs, converting customers instead of handling cash.
Furthermore, high cash usage reveals structural issues: trust deficits, literacy gaps, and infrastructure challenges.
Digital Push Faces Reality
With 5,500 branches serving 100 million people, banks still face a major financial inclusion barrier.
In rural areas, people depend heavily on cash, which suggests a three-tier branch system could improve access.
Additionally, banks could use e-KYC, biometrics, and analytics to move customers to digital banking safely.
Experts agreed that cash will remain relevant due to culture, convenience, and security concerns.
CBN data shows that total cash in circulation reached ₦5.73 trillion in 2025.
Of this, ₦5.43 trillion—nearly 95%—stayed outside the banking system.
Earlier in 2025, data already indicated that more than 90% of cash circulated beyond banks.
Ultimately, Nigeria balances tradition and innovation, showing that trust and cash remain central to everyday life.
