CBN Targets N2.83tn Cash Return to Banks, Plans 50 Million New Financial Users by 2028

The Central Bank of Nigeria (CBN) has unveiled an ambitious strategy to bring an estimated N2.83tn held outside the formal banking system back into financial channels and expand financial inclusion by onboarding 50 million additional Nigerians by 2028.

The targets are contained in the Nigeria Payments System Vision 2028 (PSV 2028), launched on Monday in Abuja by CBN Governor, Olayemi Cardoso, as the apex bank seeks to accelerate digital payments adoption, reduce reliance on cash, deepen financial inclusion and position Nigeria as a leading payments hub in Africa.

The framework was unveiled before an audience comprising regulators, banks, fintech firms, telecommunications operators, development partners and other stakeholders in the financial ecosystem.

Cardoso described the initiative as more than a technology-driven financial reform, saying it is fundamentally about economic transformation, poverty reduction and inclusive growth.

“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system. Let us not take it lightly,” the governor said.

According to him, the Payments System Vision 2028 will shape how Nigerians transact, trade, save, invest 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 stated.

Push to Cut Cash Outside Banks

A major target under the new framework is reducing the volume of cash circulating outside the banking system.

Latest CBN money and credit data show that currency outside banks stood at N5.08tn in April 2026, representing about 90.03 per cent of the N5.65tn total currency in circulation during the period.

Cardoso said the central bank aims to cut that figure to below 40 per cent of money in circulation by 2028.

“I would like to see a situation where we reduce cash outside the banking system to less than 40 per cent of money in circulation,” he said.

Using April 2026 figures as a benchmark, achieving that objective would reduce cash held outside banks from N5.08tn to roughly N2.26tn, potentially drawing about N2.83tn back into the formal financial system.

Analysts say such a shift could strengthen monetary policy transmission, boost banking system liquidity, improve financial intermediation and expand lenders’ capacity to support economic activity.

The move also comes ahead of Nigeria’s 2027 general elections, a period often associated with heightened cash demand, campaign spending and concerns over vote-buying.

The Independent National Electoral Commission has scheduled presidential and National Assembly elections for January 16, 2027, while governorship and state assembly polls are expected to follow on February 6, 2027.

Earlier personal statements released by members of the Monetary Policy Committee warned that rising political and election-related spending could undermine recent disinflation gains and trigger renewed inflationary pressures.

Cardoso linked the CBN’s cash reduction target to broader efforts to restore confidence in electronic payment channels.

“Cash should no longer be king,” he declared.

Recalling a television programme in which traders reportedly refused cashless payments due to concerns over system reliability, the governor stressed the need to strengthen public trust in digital platforms.

“We need to do a lot more work to build trust and ensure that people have no doubt they are dealing with a strong and reliable payments system,” he said.

50 Million Nigerians to Join Formal Financial System

Beyond reducing cash dependence, the apex bank is also targeting a major expansion in financial inclusion.

Cardoso said the CBN aims to achieve 95 per cent financial inclusion by 2028, bringing an estimated 50 million additional Nigerians — including market women, farmers and young people — into the formal 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 BVN protecting them,” he said.

The target represents one of the most aggressive financial inclusion drives undertaken by the central bank in recent years and aligns with broader efforts to formalise economic activity and expand access to financial services.

Cardoso stressed that financial inclusion should be viewed not as an end in itself, but as a tool for economic transformation.

“The journey is to impact the lives of the poor. The journey is to lift people out of poverty and to have an impact on GDP,” he said.

He described modern payment systems as essential national infrastructure capable of driving economic growth, innovation, transparency and competitiveness.

“In a modern economy, payment infrastructure is not simply a financial utility. It is a strategic national asset,” Cardoso said.

According to him, efficient payment systems lower the cost of doing business, improve productivity, support trade, enhance transparency and widen economic participation.

The governor added that PSV 2028 is designed to strengthen payment infrastructure, deepen inclusion, promote innovation, improve resilience and expand Nigeria’s integration with regional and global payment systems.

He said the vision would also help Nigeria maximise opportunities arising from the African Continental Free Trade Area, expanding digital commerce and cross-border trade.

“This is not merely about technology or transactions. It is about opportunity,” he noted.

“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 and greater participation in regional and global commerce.”

Despite the ambitious goals, Cardoso maintained that the success of the programme would ultimately depend on implementation.

“The success of PSV 2028 will not be measured by the quality of this document. It will be measured by execution,” he said.

He called for collaboration across regulators, banks, fintech companies, telecom operators and other stakeholders to translate the framework into measurable economic outcomes.

“As the Federal Government builds roads, schools and hospitals, we here must also build the invisible roads that move money,” he said.

“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 of the framework, CBN Deputy Governor, Economic Policy Directorate, Dr Muhammad Abdullahi, said PSV 2028 is built around five strategic pillars.

These include payment infrastructure and interoperability, digital financial inclusion, innovation and emerging technologies, cross-border payments, and regulation and cybersecurity.

Abdullahi described payment systems as critical economic infrastructure underpinning trade, productivity, investment and financial inclusion.

“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.

According to him, the first pillar focuses on modernising payment infrastructure, strengthening interoperability between 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 compete in the digital economy,” he added.

The second pillar centres on financial inclusion, consumer protection and financial literacy, while the third seeks to leverage emerging technologies such as artificial intelligence, blockchain, digital assets and open banking.

The fourth pillar focuses on cross-border payments, including integration with the Pan-African Payment and Settlement System and the African Continental Free Trade Area framework.

Abdullahi said reducing payment friction across borders would strengthen trade, lower settlement costs, improve remittance efficiency and position Nigeria as a regional settlement hub.

The fifth pillar emphasises regulation, cybersecurity, fraud prevention and consumer trust.

“No system scales without trust, and no trust exists without security,” he said.

Stakeholders Back New Vision

In his opening remarks, Director of Payments System Policy at the CBN, Musa Jimoh, traced Nigeria’s payment reforms to 2007 when the apex bank launched the Payment System Vision 2020 roadmap.

At the time, he noted, Nigeria’s financial system was heavily cash-dependent, with limited electronic payment infrastructure.

“It started in 2007 when the Central Bank decided to create a roadmap to modernise the payment system,” he said.

Jimoh identified high banking costs, limited access to financial institutions and stringent account-opening requirements as key barriers to financial inclusion.

To address those challenges, the CBN introduced reforms such as agent banking and the cashless policy.

“Today, we are proud to announce that we have over two million agents spread across the country,” he said, noting that agent networks have significantly expanded financial access while creating jobs nationwide.

Other regulators also endorsed the new framework.

Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, stressed the importance of regulatory collaboration to achieve the vision’s objectives.

“For us in the capital market, it’s delivery versus payment. Delivery speaks to securities and payment means having to pay the cash,” he said.

Agama argued that Nigeria has emerged as a global reference point in digital payments and urged stakeholders to project the country’s achievements more effectively internationally.

Similarly, Executive Vice Chairman of the Nigerian Communications Commission, Dr Aminu Maida, described the framework as a key step towards supporting the Federal Government’s aspiration of building a $1tn economy.

He noted that fraud and cybersecurity challenges increasingly cut across sectors and national borders, making collaboration essential.

“Collaboration has to guide us moving forward toward achieving that goal of a trillion-dollar economy,” Maida said.

He added that the NCC is expanding fibre infrastructure and broadband connectivity nationwide to support digital payments and deepen financial inclusion.