Nigeria’s Push for a Cashless Future: CBN Rolls Out New Payments System to Reduce Reliance on Cash

The Central Bank of Nigeria (CBN) is doubling down on its cashless economy policy, unveiling plans for an upgraded payments framework aimed at slashing cash-based transactions and boosting digital payments across the country.

The CBN says it is working on an enhanced national payments system to support digital transactions, making electronic payment channels more efficient and accessible for Nigerians.
In its latest Payments Vision 2025 (PV2025) document, the bank commits to reducing cash usage and encouraging electronic alternatives, while also introducing new regulatory measures to tighten oversight of payments infrastructure.
Plans include wider adoption of open banking, contactless payments, and efforts to make platforms such as PoS, mobile payments, and instant transfers more secure and reliable.
With cash transactions expected to decline by 32% by 2030, the shift reflects a global trend and signals that digital payments are increasingly becoming the backbone of commerce in Nigeria.
For many Nigerians, especially in remote or underserved areas, this move could mean easier access to financial services, less cash dependency, and more convenience for daily transactions.
Stronger digital infrastructure and regulation will be essential to prevent fraud, ensure security, and build public trust in non-cash payments.

Potential Challenges

Infrastructure gaps like inconsistent internet connectivity and electricity supply may slow adoption in rural areas.
Public awareness and education on using digital payment tools safely will be crucial.
Ensuring regulatory compliance and protecting consumer data will also be vital as more transactions go digital.

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