2027 polls: CBN eyes N2.83tn cash outside banks
THE Central Bank of Nigeria (CBN) has unveiled plans to draw about N2.83 trillion currently held outside the banking system into formal financial channels while onboarding 50 million more Nigerians into the financial system by 2028.
The targets are contained in the ‘Nigeria Payments System Vision 2028’ launched on Monday in Abuja by the CBN Governor, Olayemi Cardoso, as the apex bank pushes to deepen digital payments, strengthen confidence in financial services, reduce dependence on cash transactions, and position Nigeria as a leading payments hub in Africa.
The initiative comes months ahead of Nigeria’s 2027 general elections taking place in January and February, 2027, amid renewed concerns over vote-buying, cash-intensive campaigns, and increased spending limits for candidates.
The unveiling attracted regulators, commercial banks, fintech companies, telecommunications firms, development partners, and other stakeholders within the financial services ecosystem.
Cardoso said the initiative goes beyond technology and financial transactions, describing efficient payment systems as a major tool for reducing poverty and accelerating economic growth.
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“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system,” he said.
According to the CBN governor, the Payments System Vision 2028 is designed to shape how Nigerians transact, save, invest, and participate in the digital economy over the next 3 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 added.
N2.83tn outside banks
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The new framework comes amid continued concerns over the high volume of cash circulating outside the banking system despite years of financial inclusion efforts.
Latest CBN money and credit statistics shows that currency outside banks rose to N5.08 trillion in April 2026, representing about 90.03 percent of the N5.65 trillion total currency in circulation during the period.
Cardoso said the apex bank plans to reduce cash outside the banking system to below 40 percent of total currency in circulation by 2028.
“I would like to see a situation where we will reduce cash outside the banking system to less than 40 percent of money in circulation,” he said.
Using the April 2026 figures as a benchmark, the target would reduce currency held outside banks from N5.08 trillion to about N2.26 trillion, potentially returning around N2.83 trillion into the formal financial system.
Analysts say such a move could strengthen monetary policy transmission, improve liquidity within the banking sector, enhance financial intermediation, and increase lenders’ capacity to support economic activity.
The push also comes ahead of the 2027 elections, a period often associated with increased cash spending, political mobilisation, and concerns over vote-buying.
Earlier, members of the Monetary Policy Committee (MPC) had warned that rising election-related spending ahead of the 2027 polls could weaken the country’s disinflation gains and trigger fresh inflationary pressures.
Cardoso linked the target to efforts aimed at rebuilding trust in electronic payment channels and reducing reliance on physical cash.
“Cash should no longer be king,” he said.
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The governor recalled concerns after watching a programme where traders rejected cashless payments due to fears over unreliable payment systems.
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“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,” he said.
50 million Nigerians targeted
Beyond reducing cash circulation outside banks, the CBN said it intends to increase financial inclusion to 95 percent by 2028, potentially bringing 50 million additional Nigerians into the formal banking and digital payments ecosystem.
“Under Vision 2028, I would like to see this reaching 95 percent 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,” Cardoso said.
The target represents one of the largest financial inclusion drives by the apex bank in recent years and aligns with broader efforts to formalise economic activities and expand access to financial services.
According to the CBN governor, financial inclusion should serve as a catalyst for economic transformation.
“The journey is to impact the lives of the poor. The journey is to lift people out of poverty, and the journey is to have an impact on GDP,” he stated.
Cardoso said modern payment systems had become strategic national infrastructure capable of driving innovation, productivity, transparency, and economic participation.
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“In a modern economy, payment infrastructure is not simply a financial utility. It is a strategic national asset,” he said.
He added that the framework would help Nigeria take advantage of opportunities under the African Continental Free Trade Area (AfCFTA) and increasingly interconnected digital markets.
“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,” he added.
Despite the ambitious targets, Cardoso stressed that implementation would determine the success of the initiative.
“The success of PSV 2028 will not be measured by the quality of this document. It will be measured by execution,” he said.
He urged regulators, banks, telecom operators, fintech companies, and other stakeholders to collaborate in translating the framework into measurable economic outcomes.
“As the Federal Government of Nigeria builds roads, schools, and hospitals, we here must also build the invisible roads that move money,” Cardoso said.
He added, “Vision 2028 is not a government project. It is a Nigerian project. Together, we will build a payments system that is fast, inclusive, secure, and proudly Nigerian.”
Five strategic pillars
Providing further details, the CBN Deputy Governor, Economic Policy Directorate, Mr Muhammad Sani Abdullahi, said the framework is built around five strategic pillars: payment infrastructure and interoperability, digital financial inclusion, innovation and emerging technologies, cross-border payments, and regulation and cybersecurity.
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Abdullahi described payment systems as critical economic infrastructure supporting trade, investment, productivity, and innovation.
“Every successful payment represents more than a financial transaction. It enables commerce, supports enterprise, facilitates trade, connects markets, and creates opportunities for economic participation,” he said.
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According to him, the first pillar focuses on upgrading payment infrastructure, improving interoperability among banks and fintech firms, deploying open APIs, and expanding real-time payments.
“Efficient payment infrastructure lowers transaction costs, improves business productivity, and enables firms of all sizes to participate competitively in the digital economy,” he stated.
He explained that the second pillar targets financial inclusion, consumer protection, and financial literacy, while the third seeks to harness technologies such as artificial intelligence, blockchain, digital assets, and open banking.
The fourth pillar centres on cross-border payments and integration with the Pan-African Payment and Settlement System and the African Continental Free Trade Area framework.
Abdullahi said reducing payment bottlenecks across borders would improve trade, lower settlement costs, boost remittance efficiency, and strengthen Nigeria’s position as a regional settlement hub.
The fifth pillar focuses on regulation, cybersecurity, fraud prevention, and consumer confidence.
“No system scales without trust, and no trust exists without security,” he said.
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Stella Odiche
Researcher-Reporter
Lagos, Nigeria
Stella Odiche is a researcher and reporter. She lives in Lagos and reports topics such as aviation, oil and gas, banking and general business. She is award-winning journalist and wideliy travelled researcher.
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