IROKO

Public and Financial Analyst.
#Economist
#O&G watcher #Nigeria.
Retweet is not an endorsement.

[IROKO @Olasulei]

Use your thumb to vote bad leader out, Don't burn the Country you so much loved, don't let any SM influencers fingered your brain to burn your country. Note this, when she burns, the take off.

#GodBlessNigeria.

[IROKO @Olasulei]

@OlufemiAwoyemi No doubt!

[IROKO @Olasulei]

It won't be a surprise to think that a large portion of such cash is in bedrooms, shock away, penthouse or other form of stores.

[Olufemi AWOYEMI @OlufemiAwoyemi]

Nigeria's financial system is experiencing a phenomenon that defies conventional economic logic: electronic payment volumes have surged by more than 300% since 2020, yet 94.76% of the nation's ₦5.73 trillion in currency in circulation remains stubbornly outside the banking system.

This is not a temporary aberration or a brief holdover from the old ways. It's a structural feature of how Nigeria actually works, and it tells us something important: our payments revolution isn't killing cash. It coexists with it. The two are growing side by side, serving different needs, different people, different moments in the day. And if you want to understand where Nigeria's economy is really headed, you need to understand why.

While policymakers celebrate digital payment adoption as evidence of modernisation, the parallel growth of cash hoarding exposes uncomfortable truths about trust deficits, infrastructure inadequacy, and the informal economy's enduring dominance. @cenbank's proposed ATM card ratio policy addresses symptoms while ignoring root causes.

Nigerians prefer cash not because they reject technology, but because formal financial institutions have failed to earn their confidence. When bank networks fail, when accounts are frozen arbitrarily, when transaction costs exceed the value of micro-commerce, cash becomes not a legacy payment method but a rational survival strategy.

This article examines why Nigeria's digital revolution is expanding the payments ecosystem rather than transforming it, what this means for monetary policy effectiveness, tax mobilisation, and the future of financial inclusion, and why Nigeria’s financial future is not purely digital but decisively #phygital.

EXTRACT
So, what's the Central Bank planning to do about this? They've floated an ATM-card ratio policy that essentially requires banks to maintain enough working ATMs relative to the number of cards they've issued, with penalties for downtime and cash-out failures. It's a supply-side fix: more ATMs, better access, fewer excuses. But here's the thing: more ATMs don't change the fact that people prefer cash in the first place. If the networks still fail, if the fees still sting, if trust is still broken, Nigerians will keep choosing cash no matter how many shiny new machines you install. You're treating the symptoms, not the disease.

A real solution would have to be more ambitious and more honest. It would mean getting ATM uptime above 95% and keeping it there. It would mean eliminating or capping transaction fees for small payments so that going digital doesn't punish the people who can least afford it. It would mean massive financial literacy campaigns, not just teaching people how to use apps, but helping them understand dispute resolution, security, and why digital might actually save them money. It would mean simplifying tax compliance for small businesses, so they're not terrified of leaving a digital trail. And above all, it would mean rebuilding trust by putting in place (or redesigning what exists) to deliver transparent grievance mechanisms, protection against arbitrary account freezes, and accountability when the system fails.

The banking conference in Lagos arrived at an interesting conclusion: the future in Nigeria isn't purely digital. It's 'phygital', a blend of physical and digital that accepts the reality of where the country actually is. Dr Stanley Jacobs puts it plainly: branches aren't dying; they're being reborn. They're becoming trust centres, places where customers can resolve problems face-to-face, verify their identity, and get advice from actual humans. In urban areas, branches can be digital guidance centres, light on tellers, heavy on tech support, helping customers navigate apps and troubleshoot issues. In semi-urban areas, you need hybrid branches that offer both cash and digital services. In rural areas, where infrastructure is still fragile, branches remain cash-heavy because that's what works.

Daniel Awele made the point that the future branch isn't a cash counter, it's a digital hub. But getting there requires using the physical space to build confidence in the digital tools. E-KYC, biometric verification, and staff-assisted onboarding are bridges that move people from cash dependence to digital fluency without leaving them feeling abandoned or exploited. It's relationship banking with a tech backbone, and it acknowledges that trust can't be automated.

Let's be clear about where we are.

Nigeria's 95% cash-outside-banks ratio isn't a bug. It's a feature. It's the rational response to institutional failure, infrastructure inadequacy, and a trust deficit that digital evangelism alone won't fix. The paradox of simultaneous digital growth and cash persistence isn't evidence that Nigeria is backward. It's evidence that Nigerians are smart. They're adopting the tools that serve them while rejecting the systems that don't.

The implications are massive. Monetary policy will stay constrained until more cash flows back into the banks. Financial inclusion targets will be missed if policymakers keep pretending that digital-only strategies work in a country where they demonstrably don't. Tax revenues will continue to leak through the cracks of a cash-dominated informal economy. And bank profitability will depend on navigating this phygital reality instead of wishing it away.

Mrs Abidemi Asunmo, Vice Chairman of the Committee of eBusiness Industry Heads, put it simply: "Nigeria is different." And she's right. The question now is whether the people making policy and running banks will design strategies that accept this difference and work within it, or whether they'll keep importing playbooks from places where the infrastructure is reliable, the trust is earned, and the institutions actually function as advertised. Nigeria isn't there yet. Pretending otherwise helps no one.

The path forward isn't about forcing digital adoption or romanticising cash. It's about building systems worthy of trust, infrastructure worthy of reliance, and policies that acknowledge reality instead of wishful thinking. Nigeria's financial future is phygital. The sooner everyone accepts that, the sooner we can build something that actually works for the 200 million people trying to make a living in this economy.

Cash isn't the enemy. It's the canary in the coal mine, telling us the digital revolution still has trust, infrastructure, and inclusion problems. Until those get fixed, cash will stay king. And honestly? Maybe it should.

READ MORE>>>> https://t.co/NyHdvp6ruc via @proshare @TheAnalystNG

cc: @fintechngr @cibnigeria @BDAN_NG @NIBSS_NG @CSCSNigeria @NITDANigeria @theflutterwave @paystack @moniepoint @OPay_NG @palmpay_ng @joinkuda @paga @NigeriaGov @FMCIDENigeria

[IROKO @Olasulei]

The Refree took the hatred to another level. Professional in the water. I guess, he must have being one of those that were sent back during Ghana Must Go.

[Gossip Mill Nigeria @GossipMillNaija]

Just in: Angry Nigerians have Mass Reported and Brought down Ghanaian Ref Daniel Nii ‘s Instagram Account

[IROKO @Olasulei]

What a way to say YOUR NAME, EZE!
#ArsVsTot

[IROKO @Olasulei]

All the best boys, victory is ours.

[🇳🇬 Super Eagles @NGSuperEagles]

TEAM NEWS 🗞️

🔃 Two changes from our win over Gabon.
🪄 Iwobi pulls the strings in midfield.
🔝 Osimhen leads the line.

#SoarSuperEagles #NGADRC #FIFAWCQ2026

[IROKO @Olasulei]

@FinPlanKaluAja1 In essence, and with respect to 8, the rating is abysmal.

[IROKO @Olasulei]

May be, for the GenZ, lots of old folks came out to vote.

[Morris Monye @Morris_Monye]

The low turnout of voters means that people don’t trust the electoral process and don’t want to waste their time.

Some even opened their shop during election to trade.

#AnambraDecides2025

[IROKO @Olasulei]

@Ai_here202 Send.

[Mayank Tayal @Ai_here202]

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[IROKO @Olasulei]

Chidinma Adeshina wins the 1st runner up at 2024 Miss Universe.
Congratulations to Nigeria. Black is Beautiful.

[IROKO @Olasulei]

Unfortunately, Netflix is failing. Good luck Champ.

[Mike Tyson @MikeTyson]

Party Time

#PaulTyson

[Reuters @Reuters]

Explainer: COP29: What is a carbon credit? What is Article 6? https://t.co/RSJKMX2Ph9

[IROKO @Olasulei]

@WingManInfinit1 @FinPlanKaluAja1 Here is one : Nigeria Maritime University, located in Delta State. You can get the rest from the Internet, if so wish. Even @FinPlanKaluAja1 didn't deny it, he only said it can't be classified as Infrastructure due to ASUU strike.

[IROKO @Olasulei]

@nzeogaziri @FinPlanKaluAja1 Wow! Lot? I can only wish you well. Bye.

[IROKO @Olasulei]

@FinPlanKaluAja1 @nzeogaziri Ok. Maybe, your question need to be reframed. Educational Infrastructure are essential infrastructure in any country.
Note, I am not out to defend anyone, but to point to the fact. Your opinion is yours, while mine is mine.

[IROKO @Olasulei]

@nzeogaziri @FinPlanKaluAja1 The fact is obvious. Vanguard NG underneath your source further established the fact.

[IROKO @Olasulei]

@FinPlanKaluAja1 I did in my response already. Check it, pls.

[IROKO @Olasulei]

@nzeogaziri @FinPlanKaluAja1 Source, pls.

[IROKO @Olasulei]

@nzeogaziri @FinPlanKaluAja1 Nigerian Maritime University Okerenkoko, was established in 2018. The university is located in Warri South-West Local Government area of Delta State.

Federal University of Health Technology, Otukpo, is located in Benue: https://t.co/fvXKkTTFgm