The Federal Government is reportedly considering the reintroduction and strengthening of Nigeria’s cashless policy as part of a broader national strategy aimed at combating the growing menace of kidnapping and other organized criminal activities that have continued to threaten public safety across the country.
The move comes amid increasing concerns over the sophistication of kidnapping syndicates and the enormous financial rewards generated through ransom payments, which security experts say have become one of the primary drivers of criminal operations in several parts of Nigeria. According to security sources familiar with ongoing discussions, the proposal is currently being examined alongside a range of military, intelligence, and law enforcement measures designed to weaken criminal networks and disrupt their sources of funding.
Officials involved in the review process believe that reducing the volume of cash circulating within the economy could significantly hamper the ability of kidnappers and other criminal groups to collect, transfer, and conceal ransom proceeds. By encouraging greater reliance on electronic transactions and digital payment systems, authorities hope to make financial movements more transparent and easier to monitor.
Sources within the security establishment disclosed that the proposed policy is not merely an economic initiative but is increasingly being viewed as a critical component of Nigeria’s national security framework. They argue that one of the major reasons kidnapping has remained profitable is because criminal groups largely depend on cash transactions that leave little or no trace, making it difficult for investigators to track perpetrators or identify broader criminal networks.
According to one senior security source, kidnappers intentionally demand ransom payments in cash because such transactions are difficult to monitor. Once cash changes hands, tracing its movement becomes almost impossible, allowing criminal gangs to disappear without leaving evidence that could assist investigators.
“Criminals prefer cash because it gives them anonymity,” the source explained. “When payments move through formal financial channels, security agencies can monitor patterns, identify suspicious transactions, and potentially trace those involved. Cash removes that possibility and allows criminals to operate more freely.”
The source further noted that a strengthened cashless framework would improve intelligence gathering and enhance collaboration between financial institutions and security agencies. By creating digital footprints for financial transactions, authorities would have greater opportunities to detect unusual movements of funds and identify individuals linked to criminal enterprises.
The renewed discussion surrounding the cashless policy comes at a time when kidnapping for ransom has evolved into one of Nigeria’s most pressing security challenges. What was once largely confined to a few regions has spread across multiple states, affecting urban and rural communities alike.
DOYA News gathered that criminal gangs now target a wide range of victims, including travelers, farmers, students, business owners, traditional rulers, religious leaders, and entire communities. In many parts of the country, residents live under constant fear of abduction, while families often face devastating financial and emotional consequences when loved ones are taken hostage.
Security expert Iyke Odife described the kidnapping crisis as a national emergency requiring innovative and comprehensive solutions. According to him, the continued dominance of cash transactions within the Nigerian economy has inadvertently provided kidnappers with a convenient mechanism for collecting ransom payments without exposing themselves to law enforcement scrutiny.
Odife argued that while military operations remain important, tackling the financial structures that sustain criminal organizations is equally critical. He noted that many kidnapping syndicates function as business enterprises, relying on a steady flow of ransom payments to purchase weapons, recruit members, and expand their operations.
Another security analyst, Mohammed Sani, also expressed support for the proposal, describing it as a potentially effective tool in the broader fight against organized crime. According to Sani, strengthening electronic payment systems could help authorities monitor illicit financial activities more effectively and create obstacles for criminals attempting to move large sums of money undetected.
However, he cautioned that the success of any renewed cashless initiative would depend on several factors, including the availability of reliable digital infrastructure, public confidence in financial institutions, and effective enforcement mechanisms. He stressed that policies designed to reduce cash transactions must be accompanied by practical measures that ensure citizens can access secure and efficient electronic payment platforms.
Financial analyst Chukwudi Ayogu echoed similar concerns, warning that policymakers must carefully consider the realities faced by millions of Nigerians living in rural communities. He explained that while urban residents often have access to banking services, internet connectivity, and digital payment options, many rural populations remain financially excluded.
According to Ayogu, any attempt to strengthen cashless policies without simultaneously expanding financial inclusion could create unintended hardships for vulnerable communities. He called for investments in banking infrastructure, mobile payment systems, and financial literacy programs to ensure that citizens are not disadvantaged by the transition.
While discussions on the cashless policy continue, security agencies are simultaneously intensifying operations against kidnapping networks operating in various parts of the country. One of the most closely monitored cases involves the abduction of dozens of schoolchildren and teachers in Oyo State, a tragedy that has drawn national attention and renewed concerns about the safety of educational institutions.
Security sources revealed that there is growing optimism regarding the possible rescue of 39 schoolchildren and seven teachers who were abducted from schools in Oriire Local Government Area of Oyo State. The victims were reportedly kidnapped on May 15, 2026, when armed men launched coordinated attacks on Baptist Nursery and Primary School in Yawota and two other nearby schools.
Since the abduction, security agencies have mounted extensive search-and-rescue operations aimed at locating the victims and dismantling the network responsible for the attacks. According to sources familiar with the operation, troops supported by other security agencies have established a tight security cordon around portions of a National Park forest where intelligence suggests the hostages are being held.
The ongoing operation is said to have significantly restricted the movements of the kidnappers. Security personnel have reportedly blocked key escape routes and intensified surveillance activities, making it increasingly difficult for the abductors to move freely within the forest.
One security source described the situation as reaching a critical stage, noting that the sustained pressure from troops has severely disrupted the kidnappers’ operations.
“The operation has entered a decisive phase,” the source said. “The criminals are under enormous pressure and are finding it increasingly difficult to maneuver or relocate.”
Intelligence reports indicate that the kidnappers have become increasingly desperate as security forces tighten their grip. Investigators reportedly believe that the killing of one abducted teacher may have been intended as a tactic to intimidate authorities and force concessions from the government.
Initially, the abductors were said to have demanded ransom payments and the release of detained associates. However, sustained military pressure is believed to have weakened their negotiating position and limited their options.
Media reports have linked the attack to individuals associated with Jama’atu Ansarul Muslimeena Fi Biladis Sudan, commonly known as Ansaru, a group with documented ties to insurgent activities in parts of northern Nigeria. Security officials continue to investigate these claims while pursuing those responsible for the kidnappings.
DOYA News understands that authorities remain confident that ongoing operations will ultimately lead to the safe recovery of the victims and the dismantling of the criminal network behind the attacks. Senior security officials have reiterated the government’s commitment to ensuring that criminal organizations are denied safe havens anywhere within the country.
As Nigeria confronts the dual challenges of insecurity and criminal financing, the proposed revival of the cashless policy represents a significant shift in strategy. By targeting the financial lifelines that sustain kidnapping operations while simultaneously increasing pressure on criminal groups through coordinated security operations, authorities hope to weaken one of the country’s most persistent security threats and restore confidence among citizens who continue to demand lasting solutions to the kidnapping crisis.