Banking operations leaders in Nigeria are reassessing the role of physical cash as the country’s payments ecosystem becomes increasingly digital, seeking a balance between efficiency, inclusion, and operational resilience.
The Committee of Heads of Bank Operations, known as CHBO, said it will address the issue at its 2026 Banking Operations Conference, scheduled for Friday at the Bankers House in Lagos. The annual event is expected to convene senior executives and decision makers from banks, payment service providers, and financial infrastructure institutions.
The conference comes amid rapid growth in electronic transactions driven by mobile payments, instant transfers, and expanding digital infrastructure. Despite these gains, cash continues to dominate large segments of economic activity, particularly in informal markets and in communities with limited access to reliable digital channels.
Ms Hope Okpara, Communication Executive of CHBO, said the theme of the conference is “Re-imagining the Future of Cash in a Digital-First Economy.” She said the discussions will focus on how the financial system can balance accelerating digital payment adoption with the continued relevance of cash.
“The conference will interrogate how cash can be repositioned to coexist more efficiently, securely and sustainably alongside digital payment channels,” Okpara said. She noted that this balance is especially important in sectors where cash remains essential because of infrastructure gaps or customer preferences.
Organisers said the agenda will move beyond theory to address practical operational challenges faced by banks. Sessions are expected to examine how cash operations can be redesigned to reduce costs, improve security, and integrate more effectively with electronic payment systems.
CHBO Chairman Abraham Aziegbe said the 2026 conference is taking place at a critical point for the financial services industry.
“As Nigeria deepens its digital payments infrastructure, cash remains an indispensable part of economic activity,” Aziegbe said. “This conference is about confronting operational realities head-on and charting a future where cash is smarter, more efficient and better integrated with digital systems.”
He said discussions will explore strategies such as using technology to improve traceability and security, strengthening interoperability between cash and electronic channels, reassessing cost and risk frameworks, and improving customer experience across multiple payment touchpoints.
Banks have faced mounting pressure to manage the rising costs associated with cash handling and distribution, even as customers increasingly expect fast and seamless digital services. Industry analysts say the challenge lies in modernising operations without excluding individuals and businesses that still depend heavily on physical currency.
Mr Tolulope Ogundipe, Chairman of the Conference Planning Committee, said the programme has been deliberately structured to deliver actionable outcomes.
“This year’s theme reflects the industry’s shared responsibility to rethink cash beyond legacy processes,” Ogundipe said. “Our objective is to provide a platform where banks, regulators, switches and service providers can align on sustainable models for cash management in a digital-first era.”
He added that CHBO expects the conference outcomes to shape industry thinking, inform policy discussions, and support more resilient banking operations as digital adoption accelerates nationwide.
According to CHBO, insights from the conference could help banks align their operational strategies with Nigeria’s broader payments modernisation agenda, while acknowledging the realities of an unevenly digitised economy.
As electronic payments continue to grow, industry leaders say the central question is no longer whether cash should remain, but how it can evolve. The discussions in Lagos are expected to reinforce a view increasingly shared across the sector: that the future of payments in Nigeria will depend not on replacing cash entirely, but on integrating it more intelligently into a digital-first financial system.