CBN bets on digital payments for economic transformation

The Central Bank of Nigeria sees stronger payment systems as key to growth, inclusion and trade, but the success of its Payments System Vision 2028 hinges on delivering measurable economic benefits, writes SAMI TUNJI

When most Nigerians transfer money from a mobile phone, pay for groceries through a Point-of-Sale terminal, receive salaries instantly or make online purchases, few pause to think about the infrastructure working behind the scenes.

Yet for the CBN, that invisible network has become one of the country’s most important economic assets.

The apex bank believes the next phase of Nigeria’s economic growth may depend not only on roads, power plants and factories but also on how efficiently money moves across households, businesses and borders.

That conviction formed the basis of the Payments System Vision 2028 unveiled recently by the CBN in Abuja, where regulators, banks, fintech operators, telecommunications companies and payment infrastructure providers gathered to discuss the future of Nigeria’s digital economy.

The initiative arrives at a time when digital payments have become deeply embedded in everyday life. The scale of Nigeria’s digital payments revolution is evident in the numbers. Electronic transactions across banking channels climbed to N284.9tn in the first three months of 2025, while the NIBSS Instant Payments platform processed approximately 11 billion transactions in 2024, reflecting the growing shift by households and businesses towards digital financial services. Electronic transactions have equally continued to rise as mobile banking, agent networks and fintech platforms expand across the country.

For the CBN Governor, Olayemi Cardoso, the new vision extends beyond payment technology.

“Today, we unveil more than a payments strategy. We unveil a vision for how Nigerians will transact, trade, save, invest, and participate in an increasingly digital economy,” he told stakeholders at the launch of the Payments System Vision 2028.

The statement captures a growing consensus among policymakers and industry leaders that payment systems have evolved into critical economic infrastructure capable of influencing productivity, trade, financial inclusion and investment.

Cash-to-digital

Nigeria’s payment transformation did not happen overnight. The journey began almost two decades ago when the CBN launched a roadmap to modernise the country’s payment system.

Speaking at the event, the Director of Payments System Policy, Musa Jimoh, recalled an era when cash dominated economic activities, ATMs were scarce and financial services remained inaccessible to millions of Nigerians.

According to him, three major obstacles stood in the way of financial inclusion. Banking services were expensive, financial access points were limited, and opening an account often required documentation that many Nigerians did not possess.

To address those challenges, the regulator introduced policies ranging from the cashless initiative to agent banking to simplified account-opening processes.

The results have been significant. Jimoh revealed that agent banking outlets have expanded from about 50,000 agents in the early years to more than two million spread across the country today. The expansion has helped bring financial services closer to communities that previously lacked bank branches and has supported the rapid growth of digital payments.

Nigeria’s financial inclusion drive has recorded further gains, with the World Bank’s Global Findex 2025 showing that 63 per cent of adults now own an account and 54 per cent make digital payments. Still, millions of Nigerians remain outside the formal financial system. The challenge, therefore, is no longer simply about access.

It is about usage, trust and participation.

“Because if they don’t trust the financial services, they will never use it,” Jimoh said.

That concern laid the foundation for the PSV 2028 framework.

The CBN’s Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, said the vision seeks to build a payment ecosystem that is innovative, inclusive, resilient and globally connected.

According to him, modern payment systems are no longer merely channels for settling transactions.

“They are strategic economic infrastructure that support trade, investment, financial inclusion, innovation, and productivity.”

The vision rests on five major pillars, including infrastructure development, financial inclusion, innovation, cross-border payments and stronger security frameworks.

Together, these pillars are expected to shape how Nigerians interact with money over the next three years.

Payments drive growth

Beyond convenience, stakeholders at the launch repeatedly linked payments to broader economic development.

Cardoso argued that efficient payment systems lower business costs, improve productivity, strengthen transparency and support economic participation.

“For Nigeria, efficient payment systems reduce the cost of doing business, improve productivity, strengthen transparency, support trade, and broaden participation in economic activity,” he said.

The governor described payment infrastructure as a strategic national asset capable of supporting the country’s wider economic ambitions.

The connection between payments and economic growth was echoed by fintech operators.

Moniepoint founder and Group Chief Executive Officer Tosin Eniolorunda said digital payments provide visibility into business transactions and financial flows, creating opportunities for credit expansion.

“We need to layer credit on that. Payment is moving money, but it gives visibility into the flows of businesses and customers,” he said.

For many small businesses, access to finance remains one of the biggest barriers to growth.

The ability of payment platforms to generate transaction histories could help lenders assess risks and extend credit to businesses previously excluded from formal financing.

Abdullahi similarly argued that inclusion is an economic growth strategy because it connects individuals and informal businesses to formal financial systems, deepens liquidity and creates new economic opportunities.

The vision also aligns with Nigeria’s broader ambition to build a larger digital economy.

The Executive Vice Chairman of the Nigerian Communications Commission, Dr Aminu Maida, linked PSV 2028 to the Federal Government’s goal of building a $1tn economy.

According to him, stronger digital infrastructure and payment systems would be necessary foundations for achieving that target.

Yet it was noted that payment systems alone cannot drive growth. Issues such as broadband access, electricity shortages, digital literacy and smartphone affordability remain important constraints. That reality surfaced during the panel discussions.

The Managing Director of NIBSS, Premier Oiwoh, argued that wider smartphone adoption would be necessary if Nigeria hopes to deepen digital inclusion. He suggested that affordable locally manufactured devices could help accelerate adoption and bring more Nigerians into the digital economy.

Tracking success metrics

While much of the discussion around PSV 2028 focused on innovation, inclusion and competitiveness, Cardoso argued that the vision must ultimately be judged by measurable outcomes rather than ambitious rhetoric.

“How is this going to impact GDP?” the CBN governor asked stakeholders, stressing that performance indicators would determine whether the initiative succeeds or fails.

To answer that question, he outlined a series of targets that the apex bank hopes to achieve by 2028.

On financial inclusion, Cardoso said he would like to see Nigeria reach 95 per cent inclusion, bringing an estimated 50 million additional market women, farmers, artisans and young people into the formal financial system through bank accounts or digital wallets linked to their identities and Bank Verification Numbers.

He also set an ambitious target for reducing cash dependence. According to him, the proportion of money held outside the banking system should fall to less than 40 per cent of currency in circulation. To support that transition, he called for the deployment of 10 million QR codes and tap-to-phone payment acceptance points across markets, bus parks and rural communities.

The governor equally identified trust and security as critical benchmarks. He said fraud losses should account for less than 0.001 per cent of all transactions by 2028, with stronger BVN integration, NIBSS infrastructure and artificial intelligence-powered fraud detection helping to make digital transactions safer than cash stored at home.

Beyond the numbers, however, Cardoso said the broader objective was economic transformation. The vision, he noted, should help lift millions of Nigerians out of poverty, deepen participation in the formal economy and contribute meaningfully to GDP growth.

For him, PSV 2028 is not simply about moving money faster but about using payment infrastructure as a tool for inclusion, productivity and national prosperity.

Trust, security challenges

While optimism dominated discussions, concerns about cybersecurity and fraud featured prominently throughout the event. As digital transactions increase, so do opportunities for criminal exploitation.

The Chief Operating Officer and Chief Technology Officer of OPay, Dotun Adekunle, described cybersecurity as one of the industry’s biggest challenges. According to him, the rapid growth of digital channels initially outpaced security frameworks, leaving institutions vulnerable to emerging threats.

He, however, noted that the CBN’s cybersecurity framework has helped strengthen resilience across the industry through stricter standards and independent assessments.

The NCC’s Maida also highlighted the increasingly complex nature of digital fraud.

He noted that many cybercrime incidents now involve infrastructure located outside Nigeria, making investigations difficult and requiring cooperation among multiple agencies and jurisdictions.

The challenge underscores why PSV 2028 places significant emphasis on consumer protection, cybersecurity and risk management. Without confidence in digital channels, adoption could stall.

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, stressed the need for greater collaboration among regulators.

According to him, efficient payments are inseparable from efficient capital markets because securities transactions ultimately depend on payment systems.

“There is no way we can exist properly without collaboration and working efficiently to make sure our system works,” he said.

The message was consistent across speakers. Building trust would require not only technology but also stronger regulation, coordinated oversight and improved consumer experiences.

Industry operators also warned that affordability should be balanced against sustainability.

While Nigeria boasts some of the world’s lowest payment costs, Eniolorunda cautioned that operators must still maintain viable business models capable of funding innovation and security investments.

Nigeria’s continental ambitions

Perhaps the most ambitious aspect of PSV 2028 is its regional dimension. Beyond domestic payments, the vision seeks to position Nigeria as a leading hub for cross-border transactions, trade and financial integration across Africa. The strategy aligns closely with opportunities emerging from the African Continental Free Trade Area and the Pan-African Payment and Settlement System.

Cardoso argued that efficient cross-border payments could unlock opportunities for entrepreneurs, traders and small businesses seeking access to regional markets.

Abdullahi said reducing payment frictions across Africa would enhance export competitiveness, strengthen regional integration and support trade expansion.

For industry players, the stakes are even higher. Oiwoh argued that payment infrastructure increasingly determines economic influence.

According to him, countries that control payment rails gain access to valuable trade and transaction data that can shape industrial policies and economic planning.

He warned that Nigeria risks losing strategic advantages if it fails to lead payment innovation across the continent.

“We don’t just lose payment. We also lose sovereignty,” Oiwoh said.

Others pointed to Nigeria’s existing strengths. The country hosts Africa’s largest population, one of the continent’s most vibrant fintech ecosystems and payment infrastructure that many African regulators study.

Remita Managing Director DeRemi Atanda argued that Nigeria has not received sufficient global recognition for its contributions to payment innovation.

“We have done so much, and the world knows so little about the contribution of Nigeria to the transformation of global payments,” he said.

Whether PSV 2028 ultimately delivers on its ambitions will depend less on the quality of the document and more on implementation.

“The launch of PSV 2028 is not the conclusion of a process; it’s the beginning of a new phase of execution,” the Deputy Governor for Financial System Stability, Philip Ikeazor, said.

For Nigeria, the next three years will determine whether digital payments remain primarily a convenience tool or evolve into a broader platform for economic transformation.