As digital transactions surge across Nigeria, the Central Bank of Nigeria (CBN) is tightening regulatory oversight to protect consumers, strengthen payment infrastructure and ensure innovation evolves within a secure and disciplined framework.
Under the leadership of Governor Olayemi Cardoso, the apex bank has extended its Payment System Vision (PSV) roadmap to 2028, reinforcing its commitment to modernising Nigeria’s payments architecture while deepening cybersecurity safeguards. The renewed strategy prioritises the expansion of contactless payments, stricter agent-banking guidelines and improved interoperability among switching companies measures designed to support seamless, safe and inclusive digital finance.
Nigeria’s e-payment ecosystem has recorded notable progress. Over 12 million contactless payment cards are now in circulation, while the CBN’s regulatory sandbox hosts more than 40 fintech innovators, enabling controlled testing and responsible scaling of new financial solutions. The revised agent-banking framework has also tightened anti-money-laundering controls, including geo-fencing of high-risk locations, while enhancing consumer protection at the grassroots level.
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Governor Cardoso said these reforms have helped position Nigeria as one of Africa’s most advanced digital payments markets, supported by a vibrant fintech ecosystem that has produced eight of the continent’s nine unicorns. By mid-2025, he noted, several leading fintech applications had exceeded 10 million downloads each, with one surpassing 50 million evidence of deep consumer adoption.
“In parallel, our engagement with the global fintech community has been another important supportive mechanism,” Cardoso said at the Annual Bankers’ Dinner in Lagos. He referenced the Strategic Fintech Dialogue at the IMF Fall Meetings, which brought together policymakers, innovators and investors, culminating in a consultative report expected to guide Nigeria’s next phase of fintech evolution.
Cardoso stressed that while innovation remains a priority, it must proceed responsibly. “Digital assets, tokenisation and stablecoins are now critical issues for central banks globally. Our stance is clear: innovation must be anchored in consumer protection and financial stability,” he said.
Boosting Trust in E-Payments
Analysts say the CBN’s recent actions reflect a growing focus on convenience, security and trust; key factors in driving adoption of digital financial services. New rules governing Point of Sale (PoS) terminals and payment platforms are aimed at improving transaction monitoring, reducing fraud and expanding access to finance, especially for underserved populations.
One of the landmark initiatives is the introduction of guidelines on migration to the ISO 20022 payment messaging standard and mandatory geo-tagging of payment terminals. The policy is designed to improve transparency, compliance and security across the payments value chain.
According to Cardoso, Nigeria’s payments ecosystem has often been ahead of many advanced economies. “Many innovations that other countries are only now experiencing have been part of our system for years. Nigeria’s dynamic fintech ecosystem has driven financial inclusion and positioned the country as a hub of innovation in Africa,” he said.
He warned, however, that platforms must not become channels for abuse. “Strengthening KYC onboarding, improving transaction monitoring and prioritising consumer protection are essential to keeping digital channels safe, particularly for vulnerable users,” Cardoso added, noting the CBN’s zero-tolerance stance on compliance violations.
Consumer Protection Takes Centre Stage
At the CBN Fair in Lagos, Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, said the apex bank introduced the Unified Complaints Tracking System to streamline the resolution of customer grievances. She added that the *959# USSD code for verifying licensed financial institutions further enhances transparency and public confidence.
Branch Controller of the CBN, Lagos, Sunday Daibo, said alternative financial services are no longer optional but essential. “They are the bridges connecting underserved populations to the formal financial system,” he said.
Industry Data Underscores Growth
Data from the Nigeria Interbank Settlement System (NIBSS) show that PoS terminals have become a major cash-access channel nationwide. As of March 2025, Nigeria had 8.36 million registered PoS terminals, with 5.90 million active. Transaction values hit ₦10.51 trillion in Q1 2025, a 301.67 per cent increase year-on-year.
To curb misuse, the CBN mandated geo-fencing of terminals and directed that all payment devices be registered with a Payment Terminal Service Aggregator, with precise location data. Terminals operating outside approved parameters risk being disabled.
Regional and Global Outlook
Beyond Nigeria, digital payments are expanding rapidly across Africa. According to the State of Inclusive Instant Payment Systems 2025 Report by AfricaNenda Foundation, instant payment platforms across 31 African countries processed 64 billion transactions worth nearly $2 trillion last year. Nigeria’s instant payment system remains the first on the continent to achieve mature inclusivity.
Dr. Robert Ochola, CEO of AfricaNenda Foundation, said inclusive instant payments are reshaping African economies by expanding access, trade and opportunity. The World Bank and UNECA echoed the progress but urged policymakers to prioritise inclusivity, affordability and innovation.
Cross-Border Cooperation
In a move to deepen regional integration, the CBN recently signed a Memorandum of Understanding with the Bank of Angola covering payments, supervision, cybersecurity and anti-money-laundering cooperation. Cardoso said the agreement aligns with Africa’s broader goals of financial stability and economic integration.
As digital finance accelerates, the CBN’s message is clear: innovation will be encouraged but only within a framework that protects consumers, strengthens systems and preserves trust in Nigeria’s fast-evolving payments landscape.
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