CBN Targets N2.83tn Cash Reduction Ahead of 2027 Elections

The Central Bank of Nigeria (CBN), under Governor Olayemi Cardoso, has unveiled an ambitious plan to reduce the N5.08 trillion currently held outside the banking system to N2.26 trillion by 2028. This initiative is part of the Nigeria Payment System Vision 2028, aimed at expanding financial inclusion to onboard an additional 50 million Nigerians.

The CBN seeks to deepen digital payment systems, strengthen trust in financial services, and reduce reliance on cash transactions. With the 2027 general elections approaching, concerns about cash-driven campaigns have intensified, prompting the CBN to act.

The apex bank aims to reduce cash outside the banking system to less than 40% of the total money supply by 2028, which would significantly improve monetary policy transmission and enhance liquidity in the banking sector. Cardoso emphasized the need for a reliable payment system to build trust and ensure that cash is no longer the dominant form of transaction.