Backed by the Central Bank of Nigeria (CBN), the country has unveiled its first Bank Neutral Cash Hub (BNCH), a facility designed to transform cash management and strengthen efficiency across the financial system.
The pilot hub, promoted by Bankers Warehouse (BW) Limited, was inaugurated on Thursday at the Mile 12 International Market in Lagos, one of the busiest trading centres in West Africa, meeting the Apex bank’s regulatory criteria.
The idea is simple but potentially far-reaching. The BNCH serves as a neutral point where traders, retailers, and individuals can deposit cash directly into their bank accounts or mobile wallets, regardless of the financial institution they use.
By cutting out the need to move large sums of money to distant bank branches it will help reduce Nigerians’ exposure to theft, improve cash management, and save banks and merchants the rising costs of handling physical cash.
Stella Gana, Deputy Director in the CBN’s Currency Operations and Branch Management Department, described the launch as a turning point for Nigeria’s financial system, bridging costs and risks of moving cash from markets to banks.
“The BNCH is a shared platform to receive, sort, store, and distribute cash on behalf of multiple banks, reducing risks and costs for everyone,” she said.
Although digital payments are expanding rapidly, cash remains deeply entrenched in Nigeria’s markets, rural communities, and informal economy. Officials from Bankers Warehouse emphasised that the BNCH is not an alternative to digital finance but an innovative and collaborative piece of infrastructure.
Lloyd Onaghinon, BW’s Managing Director, called it the first of its kind in sub-Saharan Africa, designed with safety, verification, and real-time processing at its core.
Victor Hammond, Founder of BW and flag bearer of the project, recalled that the idea had been delayed for years before gaining traction with strong support from market leaders and the regulator. He disclosed that BW plans to establish 200 hubs nationwide within 18 months.
“There will be no part of the country that will not be banked in another two years. Every part of Nigeria will have access to bank-neutral hubs, starting from marketplaces and expanding to cities,” he said.
The initiative is not emerging in a vacuum. In 2022, the CBN issued operational guidelines for BNCHs, outlining standards for registration, supervision, settlement, and applicable charges in furtherance of its mandate to promote a sound financial system in Nigeria.
Bankers Warehouse, incorporated in 2002 and operational since 2007, already plays a dominant role in Nigeria’s cash logistics. It has a presence in over 29 states and a fleet of more than 200 armoured vehicles.
This expansion into bank-neutral hubs will extend its role from moving and securing money to providing the infrastructure that allows more efficient financial flows.
