The Central Bank of Nigeria (CBN) has announced plans to significantly reduce the amount of cash circulating outside the formal banking system, targeting the return of approximately N2.83 trillion into financial institutions by 2028.
CBN Governor Olayemi Cardoso disclosed this target while unveiling the Nigeria Payments System Vision 2028** in Abuja on Monday.
Major Financial Inclusion Push
As part of the new vision, the apex bank also aims to bring an additional 50 million Nigerians into the formal financial system over the next three years. The initiative seeks to accelerate digital payments, reduce heavy reliance on cash, and establish Nigeria as a major payments hub in Africa.
Cardoso described the strategy as more than just a technical upgrade, emphasising its potential to create economic opportunities and lift 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,” he said.
Current Cash Situation
Latest CBN statistics show that currency outside banks stood at N5.08 trillion in April 2026, accounting for over 90% of total currency in circulation. The new plan seeks to reduce cash held outside the banking system to less than 40% of total money in circulation by 2028.
Achieving this goal would substantially increase liquidity within the banking sector, strengthen monetary policy transmission, and improve banks’ capacity to lend to businesses and individuals.
Strategic Context Ahead of 2027 Elections
The timing of this ambitious target is notable, coming just months before the 2027 general elections. With the presidential and National Assembly polls scheduled for January 16, 2027, the move is expected to help curb cash-intensive political campaigns and reduce the risk of vote-buying by limiting the volume of physical cash outside formal channels.
The Payments System Vision 2028 was developed in collaboration with key stakeholders, including commercial banks, fintech companies, telecommunications operators, regulators, and development partners.
Cardoso described the document as a comprehensive roadmap that will define how Nigerians will transact, save, invest, and participate in the digital economy over the coming years.
The initiative reflects the CBN’s continued commitment to modernising Nigeria’s payment infrastructure and building a more inclusive, transparent, and efficient financial system.
