Nigeria’s Cashless Revolution and its Distant Destination, by Rahma Olamide Oladosu
It is difficult if not impossible to ignore the buzz surrounding Nigeria’s growing dominance in real-time payments. At a recent digital finance summit, the Central Bank of Nigeria boldly positioned the country’s instant payment system as one of the most developed in the world. This was not mere rhetoric or national pride speaking. The facts back it up. Nigeria processes billions of real-time transactions each year, often with more efficiency than many supposedly advanced Western economies. The rise of this payment infrastructure, supported by an expanding network of fintech collaborations and an increasingly robust open banking environment, speaks to a leapfrog in financial services that deserves more than casual recognition. And at the heart of this progress is the Central Bank of Nigeria under the leadership of Governor Yemi Cardoso, guiding this transformation with quiet precision and firm intent.
The question, however, is not about whether Nigeria’s instant payment system is technologically advanced. That has already been proven. The more meaningful question, the one that policy watchers, economists, and the everyday Nigerian must ask, is this: whose lives are truly being transformed by this financial evolution? This is the question that defines not just the success of a payment system but the success of national policy and institutional leadership. In this context, the efforts of the Central Bank must be understood not only in terms of tech milestones but in terms of social impact. This is where the conversation must evolve and indeed, this is where the CBN is beginning to show its deeper strength.
In cities like Lagos, Abuja, and Port Harcourt, the transformation is tangible. Point of sale machines have become as common as the traders they serve. E-wallets like OPay and PalmPay have become everyday tools for market women, Uber drivers, and boutique store owners. Financial apps and mobile wallets allow people to send money, receive payments, and run businesses from a smartphone. The fintech ecosystem in Nigeria is dynamic and full of innovation. The vision that the Central Bank laid out for a cash-lite society is fast becoming reality in these urban centers and that is no small feat. The CBN deserves praise for facilitating this level of interoperability and access. It takes institutional coordination, regulatory clarity, and a sustained commitment to reform for a payment system to scale with this kind of speed and efficiency.
Governor Cardoso’s administration has further reinforced that stability and built on its foundation with purpose. His focus on collaboration with fintechs rather than confrontation shows an awareness of the new economic realities. The regulatory sandbox, the revised guidelines for Know Your Customer processes, and the integration of Tier 1 and Tier 2 banking systems have opened doors for millions of users who previously found banking either too complex or too expensive. These policies are not accidental. They are deliberate acts of economic inclusion and they are making a real difference where they matter most.
Yet even in the midst of this cashless triumph, it is clear that the fruits of innovation are not equally shared. Rural communities in Nigeria tell a different story. In places like Jigawa, Katsina, or the more remote parts of Ondo, access to mobile internet is patchy. Smartphone penetration is still below national averages. Basic financial literacy remains low. Here, traders still rely heavily on cash not because they are resistant to change, but because they do not have the infrastructure to embrace it. When the network is unreliable and power supply inconsistent, the promise of seamless payments begins to fade into frustration. For the unbanked and underbanked, convenience is a privilege and not a right. Their exclusion is not of their own making but the result of structural limitations that need thoughtful policy intervention.
It is important, however, to understand that even in these challenges, the Central Bank is not resting on its laurels. The eNaira initiative, though still evolving, reflects an attempt to bridge the urban rural divide by offering a government-backed payment option that does not require traditional bank accounts. CBN’s rural agent banking programme has also made significant strides in extending financial services to remote areas. These are not just pilots. They are signs of a broader will to include everyone in Nigeria’s cashless journey. And although the road is still long, the progress is steady. The Cardoso-led CBN understands that systemic change takes time but what matters most is direction and intent. On this, they have been consistent and commendable.
Another overlooked dimension of this transformation is the issue of affordability. Many mobile wallets and payment platforms come with hidden charges and users are often compelled to use them not by choice but by necessity. With the decline in the efficiency of some traditional bank platforms, rising ATM maintenance charges, and unpredictable network downtimes, more people are shifting to fintech alternatives. This migration is not always voluntary and without proper safeguards, it can create new layers of vulnerability. The Central Bank’s role here has been one of vigilant oversight. Recent crackdowns on unlicensed operators and the push for transparency in transaction charges are steps in the right direction. It signals that the CBN is not just facilitating growth but also protecting users within the system.
Critics will always argue that financial inclusion is a myth until the last farmer in a rural village can sell his yams without handling cash. While that may be an ideal, it does not diminish the significance of what has already been achieved. Nations are not transformed overnight. What matters is whether the institutions leading these changes are moving in the right direction and whether they are doing so with integrity, clarity, and empathy. Under Governor Cardoso’s leadership, the Central Bank of Nigeria has shown all three. The central narrative is no longer about whether change is happening. It is about ensuring that it lifts everyone equally. The CBN’s understanding of this is visible in its tone, its strategy, and its recent actions.
It is also crucial to acknowledge that the modernisation of payments is only one part of a bigger puzzle. Financial inclusion involves identity systems, credit accessibility, regulatory frameworks, consumer protection, and a cultural shift in how Nigerians view money and trust institutions. The CBN cannot solve all of this alone but what it can do, and what it is doing, is laying the pipes through which a new kind of economy can flow. In doing this, it is giving young entrepreneurs new tools to thrive. It is empowering small businesses with speed and convenience. It is building the infrastructure for the economy of tomorrow. And it is doing all of this with a steadiness that inspires confidence.
The true measure of inclusion will always be in how the system works for the most vulnerable. A mother in Borno trying to send money to her daughter in school deserves the same seamless service as a banker transferring funds in Lekki. A roadside mechanic in Kano deserves the same access to mobile payments as a freelancer in Enugu. That is the promise of innovation and that is the promise that the Central Bank of Nigeria is striving to fulfill. It is a difficult promise but the effort is real and the intention is clear.
In the final analysis, Nigeria’s payment revolution is still unfolding. It is a story of ambition, of innovation, of growing pains and early triumphs. It is not perfect but it is honest. It is not complete but it is compelling. Under the stewardship of the Central Bank and its governor, what is being built is not just a cashless economy but a platform for national renewal. And as this platform grows, more lives will be transformed, more barriers will be broken, and more Nigerians will find their place in the financial future that is being written today. That is not a myth. That is the beginning of a truly inclusive revolution.
Oladosu is a Staff Writer with the Economic Confidential