The Nigeria Inter-Bank Settlement System (NIBSS) is considering the introduction of offline payment solutions as part of efforts to deepen financial inclusion for Nigerians who lack consistent access to mobile data and internet services.
This was disclosed by NIBSS Executive Director for Business and Products, Ngover Nwankwo, on Friday, January 23, 2026, during the 2026 CHBO Conference in Lagos. She said the move is aimed at ensuring that the country’s fast-growing digital payments system remains accessible to all segments of the population.
Nwankwo noted that while digital payments continue to expand rapidly, inclusion must remain central to innovation so that vulnerable and underserved Nigerians are not excluded.
“Innovation must go hand in hand with inclusion. As digital payments grow, our priority is to ensure every Nigerian can participate,” she said.
Cash and Digital Payments Must Coexist
According to Nwankwo, cash continues to play a critical role in Nigeria’s economy and cannot be eliminated entirely. She stressed that digital payment systems should complement, not replace, cash, especially for Nigerians who still depend heavily on physical currency.
She also praised Nigerian banks for improvements in cash distribution, noting that cash availability during December 2025 was largely smooth, with few complaints from the public.
Nwankwo further highlighted advancements such as biometric verification, which enables customers to request and authenticate bank cards using fingerprints, reducing paperwork and improving access to banking services.
Concerns Over Too Much Cash Outside Banks
Also speaking at the event, Lloyd Onaghinon, Managing Director of Bankers Warehouse Plc, emphasised that cash remains relevant globally, even as electronic payments gain ground.
“Across the world, cash usage is still rising due to cultural factors, demographics, trust issues and the need for financial inclusion,” he said.
However, Onaghinon warned that holding excessive cash outside the banking system weakens financial intermediation and limits the effectiveness of monetary policy. He called for closer cooperation among regulators, banks and industry stakeholders to maintain a healthy balance between cash, electronic payments and digital currencies, while restoring public confidence in the financial system.
CBN Pushes for Stronger Fintech Collaboration
In a goodwill message, Solaja Olayemi, Director at the Central Bank of Nigeria (CBN), urged banks to partner more actively with fintech firms and microfinance institutions to bring idle cash into the formal financial system.
Olayemi revealed that nearly 90 percent of Nigeria’s cash is still held outside banks, noting that fintechs and technology-driven microfinance institutions have extensive agent networks, particularly in underserved communities.
He added that fintech companies such as Moniepoint, OPay and Kuda have secured national licences, while several others are currently in the licensing process.
Digital Transactions Surge, Inclusion Challenges Remain
Nigeria’s payments sector has experienced significant growth as transactions increasingly shift to digital channels. In the first quarter of 2025, electronic payments rose to ₦284.9 trillion, compared to ₦234.4 trillion recorded in the same period a year earlier.
This increase has been driven by real-time transfers via internet banking platforms, mobile applications, USSD, POS terminals, ATMs and other electronic channels.
Despite this progress, access challenges persist. Millions of Nigerians still rely on basic feature phones rather than smartphones that require constant internet connectivity.
Offline and low-data payment options could help close this gap, allowing more Nigerians to carry out financial transactions without relying on uninterrupted internet access and promoting broader participation in the digital economy.
