How CBN is Driving e-Payment Modernisation to Strengthen Cybersecurity, Financial Stability

The Central Bank of Nigeria (CBN) under its Governor, Olayemi Cardoso recently extended the Payment System Vision roadmap to 2028, an ambitious commitment to modernise payments infrastructure and strengthen cybersecurity. The push for contactless payment, revised agent banking guidelines and improved integration across switching companies are creating seamless opportunities for the payment markets. Besides, Nigeria’s digital‑finance transformation is accelerating, CBN’s twin priorities of fostering innovation while safeguarding stability across the payment ecosystem. Precious Ugwuzor reports

Nigeria is making significant progress in the expansion of its e-payment infrastructure and provision of seamless payment services to the people.

Already, more than 12 million contactless payment cards are now in circulation while the Central Bank of Nigeria (CBN)-instituted regulatory sandbox has expanded to over 40 fintech innovators, enabling safe experimentation and responsible scaling of new digital‑finance solutions.

The revised agent‑banking guidelines have tightened anti‑money‑laundering controls, including geo‑fencing of high‑risk areas, while improving consumer protection at the last mile. The integration across switching companies has improved, bringing Nigeria closer to seamless domestic interoperability.

CBN Governor, Olayemi Cardoso disclosed recently that supported by these measures, Nigeria today stands among Africa’s most advanced digital payments markets, with a dynamic fintech ecosystem that has produced eight of the continent’s nine unicorns.

He explained that by mid-2025, leading fintech apps had surpassed 10 million downloads each, with one surpassing 50 million downloads, reflecting deep consumer adoption.

“In parallel, our engagement with the global fintech community has been a further significant supportive mechanism. The Strategic Fintech Dialogue at the IMF Fall Meetings brought together policymakers, innovators and investors, culminating in a consultative report that will guide Nigeria’s next phase of fintech evolution,” Cardoso said during the Annual Bankers’ Dinner recently held in Lagos.

He explained that as digital assets, tokenisation and stablecoins become critical topics for central banks worldwide.

“Our stance remains clear: we will lead thoughtfully, with discipline and clarity of purpose. Innovation must proceed responsibly, anchored in consumer protection and financial stability,” he said.

Crucial Moves to Boost E-payment

In banking, convenience and security are crucial in securing customers’ trust and satisfaction. That explains why the CBN is taking measures to ensure that Nigeria’s e-payment space is safe and secured.

The implementation of new rules on Point of Sale (PoS) terminals and other payment systems reaffirms CBN’s commitment to leveraging digital channels in enhancing access to finance and credit, particularly for under-served populations. It is also a step towards improving transaction monitoring and bolstering consumer protection for the population.

The CBN raised the innovation bar with the release of a new e-payment guidelines titled: “Migration to ISO 20022 Standard for Payment Messaging and Mandatory Geo-Tagging of Payment Terminals”.

The policy aligns with CBN’s move to entrench transparency , compliance and secured e-payment space.

According to Cardoso, the Nigerian payments ecosystem has been ahead of many advanced economies, yet has not always received the recognition it deserves.

“Many innovations that other countries are only now experiencing have been part of our system for years. We must celebrate these successes, as they contribute to building our global reputation. Nigeria’s dynamic fintech ecosystem has driven financial inclusion and positioned the country as a hub of innovation in Africa,” he said.

Cardoso explained that despite a challenging external environment, Nigerian Fintechs continue to shine, attracting significant foreign investment and several have achieved global unicorn status this year. Their innovations, alongside other financial service providers, have fueled growth in transactions and made financial services more affordable and accessible for many more Nigerians.

“We must continue to leverage this channel to enhance access to finance and credit, particularly for under-served populations. However, I urge fintech companies and banks to ensure their platforms are not exploited for fraudulent activities. Strengthening the KYC onboarding process is essential to prevent malicious actors from exploiting our financial system”.

“Additionally, these institutions must prioritize improving transaction monitoring and bolstering consumer protection measures to ensure that digital channels remain safe, especially for the most vulnerable segments of our population”.

Cardoso said that while the apex bank continues to lay the foundation for price stability and foster a conducive policy environment, the role of banks in this journey remains crucial.

“At the Central Bank, we have intensified surveillance of market activities to ensure compliance. Together, we must build a market based on strong governance and transparency. As regulators, we will maintain a zero-tolerance approach to compliance violations,” he said.

Speaking during CBN Fair in Lagos, CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, explained that as a means of protecting banks’ customers and ensuring that they are not short-changed, the CBN launched the Unified Complaints Tracking System (UCTS), aimed at streamlining and improving the management of consumer complaints against financial institutions.

The system, alongside a USSD code (*959#) for verifying licensed institutions, enhances transparency and consumer protection in the Nigerian financial sector.

“The core objective of this engagement, therefore, is to sensitize members of the public on how the bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy,” she said.

Branch Controller, Central Bank of Nigeria, Lagos, Sunday Daibo, said the apex bank is taking steps to ensure more people are brought into the digital payment network.

He said: “In a world where technology is reshaping economies and redefining how people interact with financial services, alternate financial services have emerged not as an option, but as a necessity.  They are the bridges connecting the underserved populations to the formal financial system,” he said.

Industry statistics

According to Nigeria Interbank Settlement System (NIBSS) data, since their 2013 introduction, PoS terminals have become the go-to for cash for many Nigerians, with about 1,600 PoS operators per square kilometre. There were 8.36 million registered PoS terminals, with 5.90 million active/deployed as of March 2025. Transactions hit N10.51 trillion in Q1 2025, a 301.67 per cent increase from Q1 2024.

In 2024, that the Nigerian Interbank Settlement System (NIBSS) had been mandated to develop a geofencing plan to prevent terminals from being used outside their deployment addresses. Under this latest directive, NIBSS will disable a terminal that has been moved beyond its certified location.

To ensure compliance, the CBN has ordered all payment terminals to be registered with a Payment Terminal Service Aggregator (PTSA) —NIBSS or Unified Payment Services Limited — with accurate latitude/longitude coordinates indicating the merchant/agent place of business/service and status.

Terminals not directly routed to a PTSA are not permitted to transact, and all operators must ensure that their PoS terminals and applications are certified by the National Central Switch (NCS).

Regulatory views

For the CBN, digital innovations ranging from self-service technologies like cell phones, online and mobile banking, Artificial Intelligence, big data, blockchain technology, distributed ledgers, among others, have greatly challenged orthodox systems and helped improve the operational efficiency of financial institutions as they respond to customer demands for more innovative services.

Recognising the growing importance of consumer protection in an increasingly digital financial landscape, Cardoso embarked on a comprehensive review of consumer protection regulations. This review sought to upgrade the regulatory framework to address emerging risks posed by the rapid growth of Fintech and digital banking solutions.

Instant payments for Nigeria, others

Nigeria and other Africa’s digital payments landscape is already expanding at a record pace, marking a turning point towards more inclusive interoperable financial systems.

Already, 36 systems are now live across 31 African countries, with five launched over the past year. Collectively, they processed 64 billion transactions worth nearly $2 trillion last year, underscoring Africa’s rapid transition to digital finance.

Nigeria’s Instant Payments (NIP) became the first system to achieve mature inclusivity on the AfricaNenda Inclusivity Spectrum, while 10 others have advanced to progressed levels.

Beyond person-to-person (P2P) transfers, more systems are enabling person-to-business (P2B), government-to-person (G2P), and cross-border payments.

The State of Inclusive Instant Payment Systems (SIIPS) 2025 Report, released by the AfricaNenda Foundation, in partnership with the World Bank and the United Nations Economic Commission for Africa (UNECA), reveals how instant payment systems (IPS) are driving economic participation, innovation, and opportunity across the continent.

CEO, AfricaNenda Foundation, Dr. Robert Ochola, said IIPs are redefining how the African economies connect, adding that progress has been made

“Inclusive instant payments (IIPs) are transforming how Africans connect economically. The findings of SIIPS 2025 show clear progress — more countries are adopting instant payment systems, and more people are gaining access to digital financial services that support livelihoods, trade, and growth across the continent,” Dr Ochola said.

The World Bank acknowledged improvement but noted that more still needed to be done. The global bank urged countries without fast payment systems to begin implementations, while those already operating them should focus on greater inclusivity, innovation, and affordability in digital payment services.

Also commenting on the report, Chief of Section, Innovation and Technology, UNECA, Dr. Mactar Seck, said: “For digital payments to reach everyone, inclusion must be intentional. The data from SIIPS 2025 gives policymakers and regulators the confirmation they need to design ecosystems that serve marginalized parts of Africa’s communities. That is, women, youth, the informal sector and those in rural communities at large.”

The report points to significant opportunities for growth through digital public infrastructure (DPI) integration, government-to-person (G2P) payments, and cross-border interoperability.

Partnership for seamless payments

A financially stable Africa’s financial system comes with great benefits for the continent.

Aside creating a larger single market, increasing intra-African trade, boosting productivity and competitiveness, a financially stable Africa will help in attracting more foreign direct investment to the continent.

That explains why the Central Bank of Nigeria (CBN) and the Bank of Angola recently signed a Memorandum of Understanding (MoU) for bilateral technical cooperation.

The partnership further extends to payment, clearing and settlement systems management, financial sector development, banking supervision and regulation as well as Anti-Money Laundering and Countering the Financing of Terrorism.

Cardoso, who signed on behalf of the Bank alongside the Governor of the Central Bank of Angola, Manuel Antonio Tiago Diaz, noted that the MoU aligns with Africa’s broader goals of economic integration and financial stability.

Both apex bank leaders said the partnership marks a critical development between the two institutions in their efforts to deepen bilateral cooperation and technical exchange.

Both institutions are by the MoU expected to establish a bilateral forum for the reciprocal exchange and sharing of technical assistance between the authorities,  to enhance capacity in the execution of their respective Central Bank functions.

They are also expected to cooperate and collaborate in the cross-border supervision of authorized institutions and exchange of cybersecurity information between them.

According to them, the institutions are to partner on licensing, supervision, resolution planning and implementation of resolution measures for cross-border financial establishments.

They are also to ensure transparent and smooth periodic exchange of

Information as well as define procedures for exchange of information.

The cooperation will also extend to exchange control, financial markets and foreign reserves management, currency management and  economic research.

Both central bank leaders said it is their hope that the outcome of the MoU implementation will be a win-win for both parties.