Beyond financial inclusion, Nigeria's central bank is chasing regional payments leadership

For Nigerian adults like Mrs. Ajoke Ademola, who runs a small business in Lagos, the Central Bank of Nigeria's (CBN) latest policy, Payment System Vision (PSV) 2028, is more than just a dry document. It's a promise of a more inclusive financial system, one that could finally bring her business into the digital age. According to the CBN, only 52% of adults actively use digital payments, leaving a significant gap in financial inclusion. PSV 2028 aims to push this figure to 95% by 2028, and for Mrs. Ademola, this means the potential to expand her customer base, reduce cash handling costs, and access new markets.

While the CBN's focus on financial inclusion is well-documented, its new policy reveals a more ambitious goal: positioning Nigeria as a regional payments infrastructure hub. This is a strategic move, considering the country's geographical location and the growing importance of cross-border trade in Africa. By connecting African markets and supporting cross-border trade, the CBN is betting on Nigeria's payments ecosystem to become a key driver of regional economic growth.

The CBN's new policy rests on five pillars, each designed to address a specific aspect of the payments landscape. Infrastructure, interconnectivity, and interoperability will see the expansion of digital payment infrastructure, including agent banking networks and electronic payment rails. Digital financial inclusion, consumer protection, and financial literacy will focus on educating Nigerians on the safe and effective use of digital payment tools. Innovation, digital assets, and emerging technologies will explore the use of stablecoins, artificial intelligence, and other emerging technologies to improve the payments ecosystem. Cross-border payments and central bank digital currency integration will facilitate seamless cross-border transactions, while regulation, risk management, and cybersecurity will ensure the security and stability of the system.

Despite the CBN's ambitious goals, there are significant challenges to overcome. Approximately 26% of bankable adults remain financially excluded, and many Nigerians lack the know-how and confidence to use digital payment tools safely and effectively. The CBN's own data shows that electronic payment value has jumped by 203.51% since 2022, but this growth has been largely driven by a small segment of the population. To achieve its goals, the CBN will need to address these shortcomings and ensure that digital payments become a mainstream phenomenon.

The CBN's PSV 2028 is more than just a policy document; it's a blueprint for a new payments ecosystem in Nigeria. With its focus on regional leadership and financial inclusion, the CBN is betting on a quiet revolution in the payments landscape. As Mrs. Ademola and millions of other Nigerians await the rollout of PSV 2028, will the CBN's vision become a reality, or will the challenges prove too great to overcome?

The CBN's strategy will need to navigate the complex web of challenges and shortcomings in the current payments ecosystem. However, if successful, PSV 2028 could finally bring Nigeria's payments landscape into the 21st century, making digital payments a mainstream phenomenon and cementing the country's position as a regional payments infrastructure hub.