Cash vs Digital: Nigeria’s Cashless Dream Meets Street Reality

By Dr Ramanathan Murugesan, FCA, CPA

On a humid afternoon in Lagos, 24-year-old Adaeze sways inside a crowded danfo bus—one hand clinging to a metal rail, the other navigating her phone. Within seconds, she transfers her fare to the conductor. No notes. No coins. No delay.

A few kilometres away, at a roadside fruit stall, the future stalls.

A customer reaches for his phone. “Transfer?” he asks.

The vendor doesn’t hesitate. “No network. Bring cash.”

In that moment lies the paradox of modern Nigeria.

Digital payments are booming, yet cash refuses to fade. After more than a decade of policy reforms and fintech disruption, Africa’s largest economy is not cashless. It is something far more complex—a nation suspended between innovation and infrastructure, trust and uncertainty.

Policy spark, behaviour shift

Nigeria’s cashless journey began in 2012, when the Central Bank of Nigeria rolled out policies to curb cash usage and modernise payments.

On paper, the transformation is undeniable.

Data from the Nigeria Inter-Bank Settlement System shows electronic transactions rising steadily year after year. The NIBSS Instant Payment platform has become the backbone of real-time transfers, powering everything from salary payments to street-level commerce.

Traditional banks—Access Bank, Guaranty Trust Bank (GTBank), Zenith Bank, and United Bank for Africa (UBA)—have reinvented themselves as digital-first institutions. Alongside them, fintech disruptors like Flutterwave, Paystack, Opay, and PalmPay have democratised payments, turning smartphones into wallets.

In Nigeria’s cities, cash is no longer king—it is contested territory.

Fintech’s quiet revolution

If policy lit the spark, fintech fanned the flames.

For decades, millions of Nigerians existed outside the formal banking system. Fintech changed that—swiftly and at scale. With minimal paperwork and mobile-first platforms, financial services reached markets banks had long ignored.

Nowhere is this more visible than in the explosion of PoS agents. Across urban streets and rural corners alike, small kiosks double as micro-banks, handling deposits, withdrawals, and transfers.

For small businesses, this shift has been transformative. Digital payments reduce the risks of holding cash, expand customer options, and streamline operations.

Yet the revolution is uneven.

While Lagos and Abuja surge ahead, large parts of rural Nigeria remain on the margins—held back not by resistance, but by access.

Pandemic acceleration, structural exposure

Then came COVID-19—a crisis that doubled as a catalyst.

Lockdowns and health concerns pushed millions toward contactless payments. What began as necessity quickly hardened into habit, particularly among younger Nigerians.

E-commerce surged. Digital wallets swelled. Platforms like Flutterwave and Paystack recorded spikes in transaction volumes as businesses rushed online.

But beneath the growth lay fragility.

The system expanded faster than the infrastructure supporting it.

The naira redesign stress test

That fragility was laid bare during the 2022–2023 naira redesign.

As old notes were withdrawn and new ones rationed, Nigeria plunged into a cash crisis. ATMs ran empty. Banking halls overflowed. Frustration boiled over.

In desperation, millions turned to digital channels.

Transaction volumes surged—but so did failures.

Across banking apps and fintech platforms, transfers hung in limbo. Alerts delayed. Systems crashed under pressure. From GTBank to Opay, the message was the same: Nigeria’s digital rails were not yet built for shock.

The episode was more than a policy misstep—it was a stress test the system failed.

Infrastructure: The Achilles’ heel

At the heart of Nigeria’s cashless struggle lies a stubborn truth: infrastructure still lags ambition.

Unreliable electricity disrupts devices, servers, and networks. Patchy internet connectivity turns simple transfers into uncertain gambles. For millions, “transaction failed” is not an exception—it is routine.

For a roadside trader, a failed payment is not a technical glitch. It is lost income.

Cash, by contrast, is brutally simple. It works—every time.

Trust: The currency behind the currency

Beyond infrastructure lies an even more delicate issue: trust.

Digital systems promise speed, but not always certainty. Fraud, phishing, and account breaches continue to erode confidence. When transactions fail, reversals are often slow and opaque.

For many Nigerians—especially those outside the tech-savvy demographic—this uncertainty is costly.

Cash offers something digital still struggles to replicate: finality.

No pending alerts. No reversals. No doubt.

The informal economy’s quiet resistance

Any conversation about Nigeria’s payment future must confront its informal economy—vast, dynamic, and deeply cash-driven.

From open markets to roadside workshops, a significant share of economic activity operates beyond formal systems. Here, cash is not just convenient—it is strategic.

Digital payments leave trails. Cash offers discretion.

For many, the choice is not about technology, but about control.

Bringing this sector into the digital fold will require more than apps and policies. It will demand trust, incentives, and a system that works reliably at the last mile.

A nation split by access

Nigeria’s digital transition is also generational—and geographical.

Urban youth have embraced fintech with speed and ease. Smartphones, apps, and instant transfers are second nature.

But in rural communities and among older populations, adoption lags. Limited access to devices, connectivity, and digital literacy continues to widen the gap.

The result is not a unified shift, but a fragmented transition.

Cashless or cash-light?

So, has Nigeria gone cashless?

Not quite.

What has emerged instead is a “cash-light” economy—one where digital payments thrive, but cash remains indispensable.

Consumers toggle between both worlds. When networks are stable, digital wins. When systems falter, cash takes over.

This duality is not a failure. It is a reflection of reality.

The road ahead

Nigeria’s path to a truly cashless economy will not be decided by policy alone.

It will depend on power supply that does not fail, networks that do not drop, and systems that do not crash under pressure. It will require stronger consumer protection, faster dispute resolution, and deeper financial literacy.

Most importantly, it will demand trust—earned not through promises, but through performance.

An economy in motion

Nigeria is no longer where it was a decade ago. Digital payments have moved from the margins to the mainstream.

But cash remains embedded—resilient, reliable, and, for many, indispensable.

For now, the country exists between two financial realities—neither fully digital nor entirely cash-based.

It is an economy in motion, where the future of money is being shaped not just in boardrooms and policy circles, but in buses, markets, and roadside stalls.

And in Lagos, that future is decided every day—in a simple, familiar choice: Pay with a phone, or pay with cash.

Lasaco Assurance Launches N18.47bn Rights Issue to Strengthen Capital Base

Lasaco Assurance Plc has unveiled a ₦18.47 billion rights issue, announcing plans to offer 9,236,321,546 ordinary shares as part of efforts to reinforce its capital base and drive future growth.

The announcement was made during a signing ceremony held at the company’s head office in Lagos, following approvals from the Nigerian Exchange Group (NGX) and the Securities and Exchange Commission (SEC).

Lasaco Assurance Plc

Prior to this development, the company had secured shareholder backing at an extra general meeting, where investors approved the move to raise fresh capital through a rights issue.

Under the terms of the offer, shares are priced at ₦2.00 per share, with each share having a nominal value of 50 kobo. The rights issue is structured on the basis of five new shares for every six existing shares held by shareholders.

According to details released by the insurer, eligibility is limited to shareholders whose names appeared on the company’s register as of the close of business on February 20, 2026. The acceptance list opened on April 2, 2026, and will close on April 24, 2026.

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The capital raise is expected to generate approximately ₦18.47 billion, which will be used to strengthen the company’s underwriting capacity and position it for expansion within Nigeria’s highly competitive insurance industry.

In addition, the rights offered will be tradable on the floor of the Nigerian Exchange Limited, allowing shareholders the flexibility to either subscribe to their allotted shares or sell their rights during the offer period.

Financial advisers to the transaction include Meristem Capital Limited as the Lead Issuing House and PAC Capital as Joint Issuing House.

The move aligns with broader efforts across the insurance sector to meet regulatory capital requirements, enhance balance sheets, and improve capacity to underwrite large-ticket risks across various sectors of the economy.

Speaking on the development, the Managing Director of Lasaco Assurance Plc, Mr. Ademoye Shobo, stated:
“At Lasaco, we will continue to ensure that our capital is always robust, so that we’re able to deliver on the mandates to the general public.”

Lasaco Assurance Launches N18.47bn Rights Issue to Strengthen Capital Base

Soaring Fuel Prices Drive Nigerians Toward Electric Vehicles 

Rising fuel prices in Nigeria are accelerating interest in electric vehicles (EVs) as households, transport operators, and businesses seek cost-effective alternatives to petrol- and diesel-powered cars. Experts say the spike in petrol costs is no longer just an economic concern but a turning point, pushing electric mobility from a futuristic idea into a practical solution for everyday commuting and commercial use.

At the Abuja Compact on Electric Mobility Roundtable, stakeholders highlighted how increasing transport expenses are reshaping decisions, especially among commercial drivers and small business owners. Rising fuel costs are prompting many Nigerians to see EVs as a survival strategy rather than a luxury option.

Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, explained that the removal of fuel subsidies has widened the cost gap between petrol-powered vehicles and EVs. Charging an EV for a 200-kilometre journey costs around ₦4,500, compared to roughly ₦22,500 for petrol vehicles — a difference that offers a “strong economic incentive” influencing consumer choices. Ahmed added that the federal government is pursuing a balanced transition strategy supporting both compressed natural gas (CNG) and electric vehicles to encourage sustainable energy alternatives.

Financial solutions are helping Nigerians overcome the high upfront costs of EVs. Mohammed Abdul, Divisional Head at Alternative Bank, noted that lease-to-own, pay-as-you-go, and partnership schemes are making EVs accessible to drivers in the informal transport sector. These financing models allow gradual adoption while easing financial burdens.

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Industry leaders also see wider economic benefits from EV adoption. Yusuf Suleiman, CEO of Bankrol Camel EV and Blue Camel Energy Ltd, said EV investments could improve energy access, boost industrial growth, and reduce Nigeria’s reliance on imported fossil fuels. Ahmed Garba Ahmed, COO of Bankrol Camel EV, added that EVs can cut energy costs per kilometre by up to 60%, benefiting ride-hailing drivers, logistics companies, and fleet operators.

Dapo Adesina, President of the Electric Mobility Promoters Association of Nigeria (EMPAN), explained that EV adoption can strengthen Nigeria’s power sector. Solar-powered charging hubs can simultaneously power vehicles and supply electricity to nearby communities, particularly in underserved areas. Private sector initiatives are also supporting Nigeria’s EV transition. Companies like SolarCity Gas are deploying superfast EV charging stations across key urban hubs and petrol stations, expanding the country’s charging infrastructure to meet growing demand.

Despite growing adoption, electric mobility in Nigeria faces challenges such as limited electricity infrastructure and inconsistent power supply. Analysts warn that significant investments in charging networks and supportive policies are necessary for sustainable EV growth. Nevertheless, with fuel prices remaining high, EVs are increasingly viewed as economically smart and environmentally friendly alternatives, offering Nigerians a viable solution to rising transport costs.

Soaring Fuel Prices Drive Nigerians Toward Electric Vehicles